# Defense Federal Acquisition Regulation Supplement; Miscellaneous Amendments

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URL: https://www.frixlaw.com/law-library/documents/fr%3A94-12212

## Record

- **Collection:** Federal Register
- **Document type:** Uncategorized Document
- **Published:** May 27, 1994

## Text

SUMMARY: Defense Acquisition Circular (DAC) 91-6 amends the defense FAR
Supplement (DFARS) to revise, finalize, or add language on distribution
of contracts, suspension and debarment, made in America labels, ozone-
depleting substances, bills of material, price competition,
prenegotiation objectives, set-asides, certificates of competency,
small business subcontracting plan, surety bond waiver reporting, Small
Business Competitiveness Demonstration Program, Pilot Mentor-Protege
Program, ammunition and explosives, storage and disposal of toxic and
hazardous materials, Angolan petroleum, hand or measuring tools, four
ton dolly jacks, coal and petroleum pitch carbon fiber, antifriction
bearings, supplemental cost principles, penalties for unallowable
costs, overseas severance costs, legislative lobbying costs, GAO bid
protest procedures, certification of contract claims, fixed price
development contacts, basic agreements, designation of paying office,
reports of Government property, precious metals, notification of
proposed program termination or reduction, title to contractor acquired
property, Small Business Innovation Research Program, coordinated
acquisition, and activity address numbers.

DATES: Effective date May 27, 1994.
Comment Date: Comments on the interim rule, Item XXXVIII, sections
249.7003 and 252.249-7002, should be submitted in writing on or before
July 26, 1994 to the address shown below.

ADDRESSES: Comments on the interim rule should be submitted to Mr. Eric
Mens, Defense Acquisition Regulations Directorate, PDUSD(A&T)DP(DAR),
3062 Defense Pentagon, Washington, DC 20301-3062. Please cite DFARS
Case 93-D321 in all correspondence concerning the interim rule.

FOR FURTHER INFORMATION CONTACT:
Ms. Lucile Martin, or for Item XXXVIII, Mr. Eric Mens, (703) 604-5930.

SUPPLEMENTARY INFORMATION:

A. Background

This Defense Acquisition Circular (DAC) 91-6 includes 48 rules and
miscellaneous editorial amendments. Twelve of the rules in the DAC
(Items IX, XVIII, XXVII, XXX, XL, and XLIII-XLXIX) were published
previously in the Federal Register and thus are not included as part of
this rulemaking notice. These 12 rules are being published in the DAC
to revise the looseleaf edition of DFARS to conform to the previously
published revisions.

B. Determination to Issue An Interim Rule

A determination has been made under authority of the Secretary of
Defense to issue the rule in Item XXXVIII as an interim rule.
Compelling reasons exist to promulgate this rule without prior
opportunity for public comment. However, comments received in response
to publication of this rule will be considered in formulating the final
rule.

C. Regulatory Flexibility Act

DAC 91-6, Items I, V, VI, VIII, X, XIII, XVI, XIX, XXII, XXV, XXXI,
XXXIII, XXXIV, XXXV, XXXVI, XXXVII, XXXIX, XLI, XLII, L

The Regulatory Flexibility Act does not apply because these rules
are not significant revisions within the meaning of Public Law 98-577.
However, comments from small entities will be considered in accordance
with section 610 of the Act. Such comments must be submitted
separately. Please cite DFARS Case 94-610 in correspondence.

DAC 91-6, Items II, III, IV, VII, XI, XII, XIV, XV, XVII, XX, XXI,
XXIII, XXVI, XXVIII, XXIX, XXXII

DoD certifies that these rules will not have a significant economic
impact on a substantial number of small entities within the meaning of
the Regulatory Flexibility Act because:
Item II--The rule merely standardizes debarment procedures.
Contractors who avail themselves of the opportunity to present matters
in opposition to debarment proceedings need not engage legal
representation or present written material.
Item III--The rule only applies to those convicted of fraudulently
affixing ``Made in America'' labels.
Item IV--Any additional expenses to contractors as a result of this
rule will be reimbursable.
Item VII--The rule merely clarifies existing guidance.
Item XI--The rule is based on a statutory provision which expressly
directs these procedural revisions.
Item XII--The rule provides additional guidance on evaluating the
contractor's use of small and small disadvantaged businesses as
subcontractors.
Item XIV--The rule extends a test program directed by statute.
Item XV--The rule does not diminish any preferences accorded small
businesses, but instead increases incentives for mentor firms to
provide assistance to small businesses.
Item XVII--The rule merely prohibits storage or disposal of
hazardous material on Government property.
Item XX--The rule prohibits acquisition of hand or measuring tools
of foreign manufacture.
Item XXI--The rule prohibits acquisition of dolly jacks of foreign
manufacture.
Item XXIII--The rule prohibits acquisition of antifriction bearings
of foreign manufacture.
Item XXVI--Most contracts awarded small entities are awarded on a
competitive, fixed-price basis and the cost principles do not apply.
Item XXVIII--Most contracts awarded small entities are awarded on a
competitive, fixed-price basis and the cost principles do not apply.
Item XXIX--Most contracts awarded small entities are awarded on a
competitive, fixed-price basis and the cost principles do not apply.
Item XXXII--The rule is based directly on a statutory provision
which expressly establishes criteria for certification.

DAC 91-6, Item XXXVIII

The Regulatory Flexibility Act, 5 U.S.C. 601 et seq., applies but
the magnitude of the expected impact on small entities as a result of
the rule is unknown and impossible to estimate. An Initial Regulatory
Flexibility Analysis (IRFA) was performed and a copy submitted to the
Chief Counsel for Advocacy of the Small Business Administration for the
initially published interim DFARS rule. An amended IRFA will be
submitted to reflect the latest changes in guidance as a result of the
statutorily-imposed changes.

D. Paperwork Reduction Act

DAC 91-6, Items I, VIII, X-XIV, XVI, XVII, XIX-XXIII, XXV, XXVI,
XXVIII, XXIX, XXXI-XXXV, XXXVII, XXXIX, XLI, XLII, L

The Paperwork Reduction Act does not apply because the revisions in
this rulemaking notice do not contain and/or affect information
collection requirements which require the approval of OMB under 44
U.S.C. 3501 et seq.

DAC 91-6, Item XV

The Paperwork Reduction Act applies. OMB approved the paperwork
collection requirement in section 219.71, Pilot Mentor-Protege Program,
under clearance number 0704-0332, through January 31, 1995. OMB also
approved the paperwork collection requirement in appendix I, Policy and
Procedures for the DoD Pilot Mentor-Protege Program, under clearance
number 0704-0338, through February 28, 1995.

DAC 91-6, Item XXXVI

The Paperwork Reduction Act applies. OMB has approved the
information collection request for Item XXXVI under clearance 0704-
0246, through December 13, 1996.
Claudia L. Naugle,
Deputy Director, Defense Acquisition Regulations Council.
Defense Acquisition Circular (DAC) 91-6 amends the Defense FAR
Supplement (DFARS) 1991 edition, prescribes procedures to be followed,
and provides informational interest items. The amendments, procedures,
and information are summarized as follows:
Item I--Distribution of Contracts
This final rule amends DFARS section 204.201 to ensure that
contract distribution is consistent with security regulations.
Item II--Uniform Suspension and Debarment Procedures
DFARS section 209.402 and appendix H are added to provide uniform
suspension and debarment procedures that are to be followed by all DoD
debarring and suspending officials.
Item III--Made in America Labels
This item revises and converts the interim rule published as Item
VIII of DAC 91-5 to a final rule. The interim rule added DFARS sections
209.406-2 and 209.406-4 to require debarment consideration for anyone
convicted of fraudulently affixing ``Made in America'' labels and to
specify the period of debarment. This final rule deletes section
209.406-4, which specified the period of debarment because the
statutory mandate to specify the period of debarment was not continued
in the Fiscal Year 1994 Defense Appropriations Act.
Item IV--Elimination of Ozone-Depleting Substances.
This finalizes the interim rule issued by Departmental Letter 93-
005 on May 21, 1993. The interim rule added DFARS sections
207.105(b)(15) and 210.002-71 to implement section 326 of the Fiscal
Year 1993 Defense Authorization Act. Section 326 places restrictions on
the award and modification of contracts that require the use of ozone-
depleting substances. The interim rule is converted to a final rule
without change.
Item V--Bills of Materials
DFARS sections 210.001 and 210.011-70 are revised, and sections
210.070 and 252.210-7005 are deleted to remove unnecessary direction on
contracting for bills of materials. In addition, DD Forms 346 and 347
are removed from part 253. Guidance on bills of materials can be found
in DoDI section 4210.8, Department of Defense Bills of Materials, and
MIL-STD-295, Preparation of Bills of Materials.
Item VI--SBIR Rights in Data
Alternate II of the clause at section 252.227-7013, Rights in
Technical Data and Computer Software, is revised at paragraphs (b) and
(c) to clarify the allocation of rights in technical data and computer
software acquired under the Small Business Innovation Research Program.
Item VII--Adequate Price Competition
DFARS section 215.804-3 is revised to clarify guidance on adequate
price competition in dual source acquisitions.
Item VIII--Documentation of Prenegotiation Objectives
DFARS section 215.807(b) is added to emphasize the requirement for
documentation of the disposition of audit findings and recommendations
in prenegotiation objectives.
Item IX--Industrial Modernization Incentives Program (IMIP)
DFARS section 215.870 and the clause at section 252.215-7003 were
deleted effective January 14, 1993, by Departmental Letter 93-001, to
reflect cancellation of the DoD industrial modernization incentive
program. The program was cancelled September 18, 1992 by the Deputy
Secretary of Defense.
Item X--Extension of Set-Aside Authority
DFARS sections 219.000, 226.7000, and the clause at 252.219-7003
are revised to implement section 801 of the Fiscal Year 1993 Defense
Authorization Act. Section 801 of Public Law 102-484 codified and
extended authorities provided under section 1207 of Public Law 99-661
through Fiscal Year 2000. A new paragraph (c) is added to section
219.502-2-70 to implement section 801(g) by establishing a process for
determining whether use of small disadvantaged business (SDB) set-
asides has caused a particular industry to bear a disproportionate
share of contracts awarded by a particular contracting activity to
achieve its SDB goal.
Item XI--Certificate of Competency
This converts the interim rule, published as Item X of DAC 91-5 to
a final rule with no revision. The interim rule implemented section 804
of the Fiscal Year 1993 Defense Authorization Act. DFARS section
219.602-1 was amended and a provision at section 252.219-7009 was added
to require contracting officers to notify a small business concern, in
writing, of a determination of nonresponsibility and of the concern's
right to request the Small Business Administration to make a
determination of the concern's responsibility.
Item XII--Small Business Subcontracting Plan
This revises and finalizes the interim rule published as Item XIII
of DAC 91-5. DFARS sections 215.605 and 236.602-1 are revised to
elaborate on the requirement to evaluate the extent of participation of
small and small disadvantaged businesses in performance of a contract.
DFARS section 219.705-2(d) is revised to cross reference section
215.605.
Item XIII--Surety Bond Waiver Reporting
DFARS section 219.808-1(b)(iv) is added to require contracting
officers to prepare quarterly reports on contract awards where Miller
Act requirements for performance and payments bonds are waived under
8(a) construction contracts. Report Control Symbol DD-ACQ(AR)1930 is
assigned to this requirement.
Item XIV--Small Business Competitiveness Demonstration Program
This item converts the interim rule published as Item XV of DAC 91-
5 to a final rule with no change. This rule extended the Small Business
Competitiveness Demonstration Program through September 30, 1996. It
also revised part 219 to (1) state A-E services in support of military
construction projects or military family housing are exempt from the
program; and (2) address responsibility for reinstatement of small
business set-asides.
Item XV-Pilot Mentor-Protege Program
DFARS is amended to incorporate the DoD policy for the Pilot
Mentor-Protege Program as a new appendix I. Conforming changes have
been made to subpart 219.71 to correctly reference the new appendix and
to delete redundant material. This implements section 813 of the Fiscal
Year 1994 Defense Authorization Act.
Item XVI--Ammunition and Explosives
DFARS section 223.370-4(b)(1)(ii) and the clause at section
252.223-7002 are revised to clarify policy regarding safety precautions
for ammunition and explosives.
Item XVII--Storage and Disposal of Toxic and Hazardous Materials
The interim rule published as Item XX of DAC 91-5 is converted to a
final rule. The interim rule added DFARS subpart 223.71 and the clause
at section 252.223-7006 to incorporate the requirements of 10 U.S.C.
2692, as amended by section 2852 of the Fiscal Year 1993 Defense
Authorization Act. An editorial correction is made at section 252.223-
7006.
Item XVIII--North American Free Trade Agreement
This is an interim DFARS rule that was effective January 1, 1994.
The rule was issued December 23, 1993 by Departmental Letter 93-010.
Chapter Ten of the North American Free Trade Agreement (NAFTA)
Implementation Act of 1993 (Pub. L. 103-182) requires the three parties
to the agreement, (the United States, Canada, and Mexico) to eliminate
``buy national'' restrictions on nondefense-related purchases by the
federal governments. The Federal Acquisition Regulation (FAR) was
amended, effective January 1, 1994, but implementation of NAFTA also
required revision of the Defense Federal Acquisition Regulation
Supplement (DFARS) to integrate Buy American Act and Balance of Payment
Program waivers necessitated by NAFTA with similar existing Department
of Defense waivers for countries with memoranda of understanding or
other international agreements.
Item XIX--Angolan Petroleum
DFARS sections 225.702(2), 225.703, 225.704, and 252.225-7011 are
deleted to remove the restriction on acquisition of petroleum products
originating in Angola. Pursuant to section 842 of the Fiscal Year 1993
Defense Authorization Act, Presidential Determination No. 93-32
certified that free, fair, and democratic elections had taken place in
Angola. This action ended the DoD prohibition on purchasing of
petroleum products originating in Angola.
Item XX--Restrictions on Hand or Measuring Tools
DFARS sections 225.7002, 252.225-7012, and 252.225-7015 are revised
and 225.7003 is eliminated to combine the restriction on hand or
measuring tools with the restriction on food, clothing, fabrics, and
specialty metals. These items are subject to the same restrictions as a
result of section 9009 of Public law 101-165 and similar restrictions
in subsequent Defense Appropriations Acts.
Item XXI--Four Ton Dolly Jacks
This revises and converts the interim rule, published as Item XXVII
in DAC 91-5, to a final rule. The interim rule implemented section 9108
of the Fiscal Year 1993 Defense Appropriations Act. DFARS section
225.7018 and the clause at section 252.225-7033 were added to restrict
purchases of four ton dolly jacks to U.S. manufacturers. DFARS section
225.7018 is revised to limit this restriction to Fiscal Year 1993
funds. This restriction does not appear in the Fiscal Year 1994 Defense
Appropriations Act.
Item XXII--Coal and Petroleum Pitch Carbon Fiber
DFARS section 225.7020 and the clause at section 252.225-7034 are
added to restrict purchases of coal and petroleum pitch carbon fiber.
This implements section 8040A of Public Law 102-172 and section 9040A
of Public Law 102-396.
Item XXIII--Antifriction Bearings
This item converts the interim rule published as Item XXVII of DAC
91-5 to a final rule with no revisions. The interim rule moved the
restriction on antifriction bearings from DFARS subpart 225.71 to DFARS
subpart 225.70 because it is now a statutory restriction based on
section 832 of the Fiscal Year 1993 Defense Authorization Act. Section
832 restricts acquisition of antifriction bearings through FY 1995.
Item XXIV--Subcontractor Payment Complaints
On September 27, 1993 the Director of Defense Procurement issued to
the Military Departments and Defense Agencies, a memorandum discussing
the actions to be taken to address complaints by subcontractors of
nonpayment by a DoD prime contractor. Recent General Accounting Office
and DoD Inspector General reviews have caused concern that this matter
is not fully understood in all locations. Copies of the memorandum
should be obtained through normal management channels.
Item XXV--Supplemental Cost Principles
DFARS section 231.100-70 is revised to narrow the prescription for
use of the clause at section 252.231-7000, Supplemental Cost
Principles. The cost principles in DFARS do not apply to contracts with
educational institutions.
Item XXVI--Penalties for Unallowable Costs
This revises and finalizes the interim rule issued as Item XXXIV of
DAC 91-5. The interim rule revised DFARS section 231.70 and the clause
at sections 252.231-7001, Penalties for Unallowable Costs, to implement
section 818 of the Fiscal Year 1993 Defense Authorization Act (Pub. L.
102-484). Changes between the interim and final rule include:

--Sections 231.7000(a) and 252.231-7001(b)--Insertion of the word
``indirect'' between the words ``unallowable'' and ``costs'' to clarify
that the penalties apply to unallowable ``indirect'' and not ``direct''
costs.
--Section 231.7002-1(b)--Added ``administrative'' to the types of
penalties which may be imposed.
--Section 231.7002-5(c)(1)--In the parenthetical, inserted the words
``the types of controls required for'' to make the waiver available to
contractors which do not formally participate in a DoD sponsored self-
governance program.
--Section 252.231-7001(e)--Inserted the words ``allocated to this
contract'' to make it clear that the penalty is not based on the total
amount of unallowable costs in the indirect costs proposal.
Item XXVII--Reduction in Progress Payment Rates
This is an interim rule issued by Departmental Letter 93-009 on
November 18, 1993 to implement Section 8155 of the Fiscal Year 1994
Defense Appropriations Act (Pub. L. 103-139). Section 8155 requires the
Department of Defense to reduce the customary progress payment rate for
large businesses from 85 percent to 75 percent for solicitations issued
on or after November 11, 1993. This includes awards to large businesses
under foreign military sales contracts. The rule revised language in
DFARS section 232.501-1 and the clause at section 252.232-7004. It also
revised Table 32-1 at section 232.502-1-71 to preclude the use of
flexible progress payments in contracts resulting from solicitations
issued on or after November 11, 1993.
Item XXVIII--Overseas Severance Costs
This item converts the interim rule published as Item XXXII of DAC
91-5 to a final rule without change. The interim rule added DFARS
section 237.171 to establish the criteria and conditions for agency
waiver of the cost limitations at section 231.205-6 and it added
clauses at sections 252.237-7020 and 252.237-7021.
Item XXIX--Legislative Lobbying Costs
This item converts the interim rule published as Item XXXIII of DAC
91-5 to a final rule without change. The interim rule added DFARS
section 231.205-22(a) to make unallowable the costs of preparing any
material, report, list, or analysis on the actual or projected economic
or employment impact in a particular State or congressional district of
an acquisition program for which all research, development, testing and
evaluation has not been completed.
Item XXX--Incremental Funding of Fixed-Price Contracts
This interim rule was issued by Departmental Letter 93-008,
effective August 23, 1993. The rule added a new subpart at DFARS
section 232.7 to establish specific situations where incremental
funding of fixed-price contracts would be appropriate. The clause at
section 252.232-7007, Limitation of Government's Obligation, identifies
procedures for incrementally funding the contract and requires the
contractor to provide the Government with written notice when the work
will reach the point at which the amount payable by the Government,
including any termination costs, approximates 85 percent of the funds
currently allotted to the contract.
Item XXXI--GAO Bid Protest Procedures
This final rule removes the detailed GAO protest procedures at
section 233.104 from the DFARS. Comparable language was added to the
FAR as Item XVII of FAC 90-16.
Item XXXII--Certification of Contract Claims
This revises and finalizes the interim rule issued as Item XXXVI of
DAC 91-5. The interim rule revised DFARS subpart 233.70 and the clause
at section 252.233-7000, Certification of Claims and Requests for
Adjustment or Relief, to implement section 813 of the National Defense
Authorization Act for Fiscal Year 1993 (Pub. L. 102-484). Changes
between the interim and final rule include:

--Section 233.7000(a)--Insertion of the words ``or request'' after the
word ``claim'' in section 233.7000(a)(1); insertion of the words ``who
is authorized to bind the contractor and'' after the word
``individual'' in section 233.7000(a)(2); and an editorial at section
233.7000(a)(2)(ii).
--Section 252.233-7000--In the certification language, deletion of the
word ``and'' after the words ``knowledge and belief''; and revising the
last portion of the certification to read ``duly authorized to certify
the claim on behalf of the contractor.'' Also, in paragraph (d) of the
clause, insertion of the words ``who is authorized to bind the
contractor and'' after the words ``signed by an individual.''
Item XXXIII--Fixed Price Development Contracts
DFARS section 235.006(b)(ii) is revised to clarify the requirement
for USD(A&T) approval of the Government's prenegotiation position
before negotiations begin and of the negotiated agreement with the
contractor before it is executed.
Item XXXIV--Basic Agreements
DFARS section 235.015(b) is amended to delete the reference to the
Office of Naval Research as the central DoD activity for negotiating
basic agreements. This reflects the fact that DoD no longer requires a
single DoD activity to perform this function.
Item XXXV--Designation of Paying Office
DFARS section 242.205(1) is revised to allow a department or agency
payment office to serve as paying office for a contract assigned to the
Defense Contract Management Command if authorized by defense financial
management regulations. The revision also deletes the Air Force payment
office for missile propellants as these contracts are now paid by
Defense Financial and Accounting Service (DFAS).
Item XXXVI--Reports of Government Property
DFARS section 245.505-14 is revised to transfer requirements for
contractor reporting on Government property to a new clause at section
252.245-7001, Reports of Government Property. In addition, the DD Form
1662, DoD Property in the Custody of Contractors, has been revised to
delete the certification requirement and to clarify reporting
instructions.
Item XXXVII--Precious Metals
DFARS section 245.607-2(b) is revised to reflect the procedure
initiated to streamline the process associated with the recovery of
precious metals. The Defense Reutilization and Marketing Service is
prepositioning annual disposition instructions for certain categories
of precious metals with DoD contract administration offices.
Item XXXVIII--Notification of Proposed Program Termination or Reduction
This interim rule replaces the interim rule which was issued as
Departmental Letter 93-007 on August 9, 1993. It incorporates revisions
necessitated by section 1372 of the National Defense Authorization Act
for Fiscal Year 1994 (Pub. L. 103-160).
Item XXXIX--Title to Contractor Acquired Property
DFARS section 251.106(b) is deleted because the inconsistency in
FAR, that section 251.106(b) was designed to correct, has been
remedied. FAR section 51.106(b) was amended by FAC 90-16 to raise the
threshold under which title to contractor acquired property in
contracts with educational institutions vests in the contractor. The
$1,000 threshold in FAR section 51.106(b) was increased to $5,000 to be
consistent with the $5,000 threshold in Alternate II of the clause at
FAR section 52.245-2 and Alternate I of the clause at FAR section
52.245-5.
Item XL--Carbonyl Iron Powders
DFARS sections 225.7014 through 225.7014-3 and the clause at
section 252.225-7023 were removed by departmental letter 94-001,
effective February 14, 1994, to delete the restriction on acquisition
of carbonyl iron powders. Language restricting acquisition to powders
manufactured in the United States or Canada was in the FY 93 Defense
Appropriations Act but was not in the FY 94 Defense Appropriations Act.
Item XLI--Coordinated Acquisition Assignments
DFARS appendix B is amended to show that the Defense Logistics
Agency has only a partial assignment for certain classes of items
within Federal Supply Group 36.
Item XLII--Appendix G Update
DFARS Appendix G is amended to update activity address codes.
Item XLIII--Reflagging or Repair Work
DFARS sections 247.571 and 247.573 were revised and section
252.247-7025 was added as an interim rule by departmental letter 94-
002, effective February 25, 1994, to implement section 315 of the
Fiscal Year 1994 Defense Authorization Act (Pub. L. 103-160). Section
315 places restrictions on performance of reflagging or repair work on
any vessel used under a time charter contract.
Item XLIV--Aircraft Fuel Cells
DFARS sections 225.7021, 225.7021-1, 225.7021-2, 225.7021-3, and
252.225-7038 were added as an interim rule by departmental letter 94-
003, effective March 7, 1994, to implement section 8090 of the Fiscal
Year 1994 Defense Appropriations Act (Pub. L. 103-139). Section 8090
prohibits using fiscal year 1994 appropriated funds to procure aircraft
fuel cells unless such cells are produced or manufactured in the United
States by a domestic-operated entity. The clause in section 252.225-
7038 is to be included in all solicitations and contracts involving
fiscal year 1994 funds, unless a waiver has been granted in accordance
with section 225.7021.2.
Item XLV--Preference for Local and Small Business
DFARS section 219.504 was revised and subpart 226.71 was added as
an interim rule by departmental letter 94-004, effective March 8, 1994,
to implement section 2912 of the Fiscal Year 1994 Defense Authorization
Act (Pub. L. 103-160). Section 2912 requires DoD, when entering into
contracts as part of the closure or realignment of a military
installation under a base closure law, to give preference, to the
greatest extent practicable, to qualified businesses located in the
vicinity of the installation and to small business and small
disadvantaged business concerns. This includes contracts awarded to
carry out activities for the environmental restoration and mitigation
at military installations to be closed or realigned. The guidance in
subpart 226.71 is to be used when entering into contracts as part of
the closure or realignment of a military installation. If there is a
reasonable expectation that offers will be received from responsible
business concerns located in the vicinity of the military installation
that is being closed or realigned, do not set aside the acquisition for
small or small disadvantaged businesses unless an offer can be expected
from a small or small disadvantage business located in the vicinity of
the installation.
Item XLVI--Lifeboat Survival Systems
DFARS Sections 225.7022, 225.7022-1, 225.70222-2, and 252,225-7039
were added as an interim rule by departmental letter 94-005, effective
April 13, 1994, to implement section 8124 of the Fiscal Year 1994
Defense Appropriations Act, Public Law 103-139. Section 8124 prohibits
the purchase of totally enclosed lifeboat survival systems, which
consist of the lifeboat and associated davits and winches, if less than
50 percent of the entire system's components are manufactured in the
United States, and if less than 50 percent of the labor in the
manufacture and assembly of the entire system is performed in the
United States.
Item XLVII--Small Disadvantaged Business, Historically Black Colleges
and Universities, and Minority Institutions
DFARS sections 219.301, 226,7005, 252,219-7000, 252,219-7003,
252.219-7006, 252.226-7000, and 252.226-7001 were revised by
departmental letter 94-006, effective April 21, 1994, to implement
subsections 811(a), (b), and (c) of the Fiscal Year 1994 Defense
Authorization Act (Pub. L. 103-160). Subsections 811 (a) and (b) revise
the definitions for historically black colleges and universities (HBCU)
and minority institutions (MI). Subsection 811(c) deletes the
requirement for an offeror, that represents itself on a DoD
solicitation as small disadvantaged business, HBCU, or MI, to maintain
its status as such at the time of award. Under this interim rule, the
offeror must qualify as an ADB, HBCU, or MI only at time of submission
of the offer.
Item XLVIII--Economy Act
By memorandum of February 8, 1994, the Secretary of Defense
established requirements for approval of a written determination before
an Economy Act order may be released outside of DoD for contracting
action. DFARS subpart 217.5 was revised by departmental letter 94-007,
effective April 25, 1994, to define the role of the contracting officer
in the approval process for Economy Act orders. Contracting officers
should provide advice, if requested, to assist requirements personnel
in the preparation of written determinations to support Economy Act
orders.
Item XLXIX--Petroleum Products
DFARS sections 225.401, 225,403, and 225.403-70 were revised by
departmental letter 94-008, effective April 26, 1994, to implement
section 8094 of the Fiscal Year 1994 Defense Appropriations Act (Pub.
L. 103-139). Section 8094 requires the Department of Defense to treat
offers of petroleum products from eligible countries under the
Caribbean Basin Economic Recovery Act the same as offers from
designated countries under the Trade Agreements Act.
Under the Trade Agreements Act, designated country end products and
Caribbean Basin country end products are evaluated without regard to
the Buy American Act or Balance of Payments Program. However, petroleum
products were previously excluded from the definition of Caribbean
Basin country end products. The revisions of DFARS sections 225.401,
225.403, and 225.403-70 remove the exclusion of petroleum products from
the definition of ``Caribbean Basin country end product.'' This will
result in treating offers of petroleum from Caribbean Basin countries
as if they were offers from designated countries under the Trade
Agreements Act.
Item L--Editorial Revisions
(Note: The asterisked items are revisions being made only in the
looseleaf edition of DFARS.)

(a) The name of the Defense Advanced Research Projects Agency has
been changed to the Advanced Research Projects Agency. DFARS has been
amended to reflect the name change.
(b) The name of the Strategic Defense Initiative Organization has
been changed to the Ballistic Missile Defense Organization. DFARS has
been amended to reflect the name change.
(c) The definition of ``contracting activity'' at DFARS Section
202.101 is amended to update the contracting activity names that appear
under the headings: Department of Defense, Army, Air Force, and On-Site
Inspection Agency.
(d) DFARS section 204.670-6(b)(2) is amended to revise ``Military
Airlift Command'' to read ``Air Mobility Command.''
(e) DFARS section 209.202(a)(1) is amended to update the addressee
within AMC.
(f) DFARS section 209.403(1) is amended to update the designation
of the Air Force debarring official.
(g) DFARS section 214.406-3 is amended to add the General Counsel,
Ballistic Missile Defense Organization as BMDO's delegated authority
for mistake in bid determinations.
(h) DFARS section 215.804-6 is amended to revise the Air Force
Contractor Cost Data Reporting (CCDR) System acronym.
(i) DFARS section 215.871-3(c) is amended to revise the reference
statement ``(see Section 250.871-4)'' to read ``(see Section 215.871-
4)''.
(j) DFARS section 215.971-3(d)(2) is amended to revise the
reference statement ``(see also section 217.7406-6(a))'' to read ``(see
also section 217.7404-6(a)).''
(k) DFARS section 215.975(b) is amended to revise the addresses of
the Army and Air Force designated offices.
(l and m) DFARS section 219.1005(a) is amended for clarification.
(n) DFARS section 222.101-3(3) is amended to revise the reference
``RCS DD P&L (AR) 1153'' to read ``Report Control Symbol DD-ACQ (AR)
1153.''
(o) DFARS section 225.302(b)(i) is amended to revise the Air Force
authority list.
(p) DFARS sections 225.7004, 225.7007, 225.7010, and 225.7016-1 are
revised to update the statutory citations.
(q) DFARS section 231.205-18(c)(2) is amended to revise section
``255.7303-2'' to read Section ``225.7303-2.''
(r) DFARS section 235.015-71(i)(3) is revised to update references
to FAR cost accounting standard clauses, which were revised by FAC 90-
12.
*(s) DFARS section 237.171-1 is amended by removing the letter
``a'' after the title ``Waiver of cost allowability limitations.''
(t) DFARS section 242.1203(b)(1) is amended to revise the Air Force
address.
(u) DFARS section 243.205-70 is amended to revise the reference
``MIL-STD-480 or 481'' to read ``MIL-STD-973''; and to remove the
parenthetical statement ``(The contracting officer must consult
technical personnel before determining which MIL-STD to use.)''
(v) DFARS section 245.310-(c)(ii)(A) is amended to revise the word
``Contract'' to read ``Contact.''
(w) DFARS section 247.105(a)(iii)(A) and (D) are amended to update
the Air Force names and addresses.
(x) DFARS section 248.270 is amended by revising the reference
``MIL-STD-480 or 481'' to read ``MIL-STD-973.''
(y) DFARS section 249.105-1 is amended by revising in the
introductory statement the reference ``RCS:DD(I&L)(Q&AR)1411'' to read
``Report Control Symbol DD-ACQ (AR) 1411.''
(z) DFARS section 249.7001(b)(1) is amended by revising paragraph
(b)(1) to read ``Army--Chief, Legislative Liaison (SALL-SPA)'' in lieu
of ``Army--OSA, OCLL, (SACLL), ASA (I&L).''
(aa) DFARS section 250.201(b) is amended by revising the reference
``FAR subpart 50.4'' to read ``FAR subpart 50.2.''
(bb) DFARS section 252.203-7001 is amended by removing in paragraph
(h) the extra word ``the'' between the word ``contracting'' and the
word ``The.''
(cc) DFARS section 252.217-7026 is amended by revising at the end
of the clause the words ``(End of clause)'' to read ``(End of
provision)''.
(dd) DFARS section 252.223-7006 is amended to revise introductory
sentence reference section ``233.7013'' to reaad section ``223.7103.''
(ee) DFARS section 252.225-7025 is amended by revising in paragraph
(f) the reference ``paragraph (g)'' to read ``paragraph (f).''
(ff) DFARS section 252.225-7031 is amended in the introductory
prescription statement by revising the reference section ``225.770-4''
to read section ``225.770-5.''
(gg) DFARS section 252.234-7000(a)(4) is amended by revising the
acronym ``AFSCP'' to read ``AFMCP.''
(hh) DFARS section 252.234-7000(b)(1)(i) is amended by revising the
acronym ``AFSCP'' to read ``AFMCP.''
(ii) DFARS section 252.243-7000 is amended to update MIL-STD
references.
(jj) DFARS section 252.248-7000 is amended to update MIL-STD
references.
(kk) DFARS section 252.249-7001(a)(1) is amended to add a beginning
quotation mark between the paragraph number ``(1)'' and the word
``Major.''
*(ll) DFARS part 253 is amended to include updated DD Form 250, DD
Form 250C, DD Form 250-1, DD Form 375, DD Form 375C, DD Form 882, DD
Form 1149, DD Form 1149C, DD Form 1155, DD Form 1155C-1, DD Form 1342,
DD Form 1419, DD Form 1637, DD Form 1639, DD Form 1640, DD Form 1659,
DD Form 1662, DD Form 1861, DD Form 2222, DD Form 2222-2 and DD Form
2604.*
(mm) DFARS appendix F, parts 3 and 4 are amended to reflect name
and address updates for the Air Force.

Interim Rules Adopted as Final Without Changes

PARTS 207 AND 210--[AMENDED]

The interim rule adding sections 207.105(b)(15) and 210.002-71 that
was published at 58 FR 32061 on June 8, 1993, is adopted as final
without change.

PART 219--[AMENDED]

The interim rule amending sections 219.502-1, 219.502-2, and
219.1006 that was published as Item XV of DAC 91-5 at 58 FR 28458 on
May 13, 1993, is adopted as final without change.

PARTS 219 AND 252--[AMENDED]

The interim rule amending section 219.602-1 and adding section
252.219-7009 that was published as Item X of DAC 91-5 at 58 FR 28458 on
May 13, 1993, is adopted as final without change.

PART 225--[AMENDED]

The interim rule adding 225.7019 and 252.225-7016 that was
published as Item XXVIII of DAC 91-5 at 58 FR 28458 on May 13, 1993, is
adopted as final without change.

PART 231--[AMENDED]

The interim rule adding section 231.205-22(a) that was published as
Item XXXIII of DAC 91-5 at 58 FR 28458 on May 13, 1993, is adopted as
final without change.

PARTS 237 AND 252--[AMENDED]

The interim rule adding sections 237.171, 237.171-1, 237.171-2,
252.237-7020, and 252.237-7021 that was published as Item XXXII of DAC
91-5 at 58 FR 28458 on May 13, 1993, is adopted as final without
change.

Interim Rules Adopted as Final With Changes

PART 209--[AMENDED]

The interim rule adding sections 209.406-2 and 209.406-4 that was
published as Item VIII of DAC 91-5 at 58 FR 28458 on May 13, 1993, is
amended and adopted as final. Section 209.406-4 is removed.

PARTS 209, 215, AND 219--[AMENDED]

The finalizes the interim rule published as Item XIII of DAC 91-5
at 58 FR 28458 on May 13, 1993. Section 209.106-2 is adopted without
change and sections 215.605(b) and 219.705-2(d) are amended.

PARTS 223 AND 252--[AMENDED]

The interim rule adding subpart 223.71 and section 252.223-7006
that was published as Item XX of DAC 91-5 at 58 FR 28458 on May 13,
1993, is adopted as final with a minor editorial correction at section
252.223-7006.

PARTS 225 AND 252--[AMENDED]

The interim rule adding section 225.7018 and section 252.225-7033
that was published as Item XXVII of DAC 91-5 at 58 FR 28458 on May 13,
1993, is adopted as final with an amendment to section 225.7018.

PARTS 231 AND 252--[AMENDED]

The interim rule revising subpart 231.70 and section 252.231-7001
that was published as Item XXXIV of DAC 91-5 at 58 FR 28458 on May 13,
1993, is adopted as final with amendments at sections 231.7000 and
252.231-7001.

PARTS 233 AND 252--[AMENDED]

The interim rule revising section 233.7000 and section 252.233-7000
that was published as Item XXXVI of DAC 91-5 at 58 FR 28458 on May 13,
1993, is adopted as final with amendments to sections 233.7000 and
252.233-7000.

List of Subjects in 48 CFR Parts 202, 204, 207, 209, 210, 214, 215,
219, 222, 223, 225, 226, 231, 232, 233, 235, 237, 242, 243, 245,
247, 248, 249, 250, 251, 252, 253, Appendices B, F, G, H, and I to
Chapter 2

Government procurement.

Amendments to 48 CFR Chapter 2 (Defense FAR Supplement)

48 CFR Chapter 2 (the Defense FAR Supplement) is amended as set
forth below.
1. The authority for 48 CFR parts 202, 204, 207, 209, 210, 214,
215, 219, 222, 223, 225, 226, 231, 232, 233, 235, 237, 242, 243, 245,
247, 248, 249, 250, 251, 252, 253, and Appendixes B, F, G, H, and I to
chapter 2 continues to read as follows:

Authority: 41 U.S.C. 421 and 48 CFR Part 1.

PART 202--DEFINITIONS OF WORDS AND TERMS

202.101 [Amended].

2. Section 202.101 is amended by adding three activities in the
definition entitled Contracting activity under the heading Department
of Defense, to read ``Defense Evaluation Support Activity, Department
of Defense Office of Dependents Schools and Office of Civilian Health
and Medical Program of the Uniformed Services''; by revising under the
definition entitled Contracting activity under the heading Army, the
entry ``Laboratory Command'' to read ``Research Laboratory''; by
removing under the definition entitled Contracting activity under the
heading Air Force, the entries ``Air Force Logistics Command'' and
``Air Force Systems Command'' and inserting in their place ``Air Force
Materiel Command''; by removing under the definition entitled
Contracting activity under the heading Air Force, the entry ``Air Force
Communications Command''; by revising under the definition entitled
Contracting activity under the heading Air Force the entry ``Air
Training Command'' to read ``Air Education and Training Command''; by
revising under the definition entitled Contracting activity under the
heading Air Force the entry ``Space Command'' to read ``Air Force Space
Command''; by removing under the definition entitled Contracting
activity under the heading Air Force, the entry ``Electronic Security
Command''; by revising the heading ``Defense Advanced Research Projects
Agency'' to read ``Advanced Research Projects Agency''; by revising the
heading and subheading ``Strategic Defense Initiative Organization,
Headquarters, Strategic Defense Initiative Organization'' to read
``Ballistic Missile Defense Organization, Headquarters, Ballistic
Missile Defense Organization''; by revising in the definition entitled
Departments and agencies the words ``Defense Advanced Research Projects
Agency'' to read ``Advanced Research Projects Agency''; by revising in
the definition entitled Departments and agencies the words ``Strategic
Defense Initiative Organization'' to read ``Ballistic Missile Defense
Organization''; and by revising under the definition entitled
Contracting activity under the heading On-Site Inspection Agency, the
entry ``Headquarters, On-site Inspection Agency'' to read ``Acquisition
Management Office.''

PART 204--ADMINISTRATIVE MATTERS

3. Section 204.201 is amended by removing the introductory
paragraph and inserting in its place two new paragraphs reading as
follows:

204.201 Procedures.

(1) The procuring contracting officer (PCO) retains the original
signed contract for the official contract file. Administrative
contracting officers and terminations contracting officers provide the
original of each modification to the PCO for retention in the official
contract file. Unless otherwise directed by department/agency
procedures, the office issuing the orders maintains the original of
orders under basic ordering agreements and the original of provisioning
orders.
(2) Ensure that distribution of contracts and modifications is
consistent with security directives.
* * * * *

204.670-6 [Amended].

4. Section 204.670-6 is amended by revising in paragraph (b)(2) the
words ``Military Airlift Command'' to read ``Air Mobility Command.''

204.7003 [Amended].

5. Section 204.7003 is amended by revising, in paragraph
(a)(1)(i)(J), the phrase ``Strategic Defense Initiative Office--SDIO''
to read ``Ballistic Missile Defense Organization--BMD''.

PART 209--CONTRACTOR QUALIFICATIONS

209.202 [Amended].

6. Section 209.202 is amended by revising in paragraph (a)(1) the
entry ``Army--Headquarters, U.S. Army Materiel Command, AMCCE-PSE'' to
read ``Army--Headquarters, U.S. Army Materiel Command, AMCRD-IC''; by
revising in paragraph (a)(1) the entry ``Defense Advanced Research
Projects Agency--Director, Contracts Management Office'' to read
``Advanced Research Projects Agency--Director, Contracts Management
Office;'' and by revising in paragraph (a)(1) the entry ``Strategic
Defense Initiative Organization--Director'' to read ``Ballistic Missile
Defense Organization--Director.''
7. Section 209.402 is added to read as follows:

209.402 Policy.

(d) The uniform suspension and debarment procedures to be followed
by all debarring and suspending officials are set out in appendix H to
this chapter.
(e) The department or agency shall provide a copy of the Debarment
and Suspension Procedures at DFARS appendix H to this chapter to
contractors at the time of their suspension or when they are proposed
for debarment, and upon request to other interested parties.

209.403 [Amended].

8. Section 209.403 is amended by revising under the definition
entitled Debarring official the entry ``Air Force--The Deputy Assistant
Secretary (Acquisition)'' to read ``Air Force--The Assistant General
Counsel for Contractor Responsibility (SAF/GCR)''; by revising under
the definition entitled Debarring official the entry ``Defense Advanced
Research Projects Agency--The Director'' to read ``Advanced Research
Projects Agency--The Director''; and by revising the entry ``Strategic
Defense Initiative Organization--The General Counsel'' to read
``Ballistic Missile Defense Organization--The General Counsel.''

209.406-4 [Removed].

9. Section 209.406-4 is removed.

PART 210--SPECIFICATIONS, STANDARDS, AND OTHER PURCHASE
DESCRIPTIONS

210.001 [Amended].

10. Section 210.001 is amended by removing the definition of Bill
of Materials.

210.011-70 [Amended].

11. Section 210.011-70 is amended by removing paragraph (d).

210.070 [Removed].

12. Section 210.070 is removed.

PART 214--SEALED BIDDING

214.406-3 [Amended].

13. Section 214.406-3 is amended by revising paragraph (e)(i) and
adding paragraph (e)(ix), reading as follows:
214.406-3 Other mistakes disclosed before award.
(e) * * *
(i) Advanced Research Projects Agency: General Counsel, ARPA.
* * * * *
(ix) Ballistic Missile Defense Organization: General Counsel, BMDO.
* * * * *

PART 215--CONTRACTING BY NEGOTIATION

14. Section 215.605 is amended by removing paragraph (a) and
revising paragraph (b) to read as follows:

215.605 Evaluation factors.

(b) In acquisitions which require use of the clause at FAR section
52.219-9, Small Business and Small Disadvantaged Business
Subcontracting Plan, the extent of participation of small and small
disadvantaged businesses in performance of the contract shall be
addressed in source selection.
(i) For acquisitions other than those based only on cost or price
competition, the contracting officer shall evaluate the extent to which
offerors identify and commit to small business and to small
disadvantaged business, historically black college and university or
minority institution performance of the contract, whether as a joint
venture, teaming arrangement, or subcontractor.
(ii) Criteria for evaluation may include--
(A) The extent which such firms are specifically identified in
proposals;
(B) The extent of commitment to use such firms;
(C) The complexity and variety of the work small firms are to
perform;
(D) The realism of the proposal;
(E) Prior performance of offerors in complying with requirements of
the clauses at FAR section 52.219-8, Utilization of Small Business
Concerns and Small Disadvantaged Business Concerns, and section 52.219-
9, Small Business and Small Disadvantaged Business Subcontracting Plan;
and
(F) The extent of participation of such firms in terms of the value
of the total acquisition.
(iii) Proposals addressing the extent of small and small
disadvantaged business performance may be separate from subcontracting
plans submitted pursuant to the clause at FAR section 52.219-9, Small
Business and Small Disadvantaged Business Subcontracting Plan, and
should be structured to allow for consideration of offers from small
businesses.
* * * * *
15. Section 215.804-3 is amended by revising paragraph (b)(3)(B)(2)
and adding paragraph (b)(3)(B)(3) to read as follows:

Sec. 215.804-3 Exemption from or waiver of submission of certified
cost or pricing data.

* * * * *
(b) * * *
(3) * * *
(B) * * *
(2) Adequate price competition normally exists when--
(i) Prices are solicited across a full range of step quantities,
normally including a 0-100 percent split, from at least two offerors
who are individually capable of producing the full quantity; and
(ii) The price reasonableness of all prices awarded is clearly
established on the basis of price analysis (see FAR section 15.805-2).
(3) If price reasonableness cannot be determined on the basis of
price analysis, including the results of negotiations, the exemption at
FAR section 15.804-3(a)(1) from submission of certified cost of pricing
data shall not apply.
* * * * *

Sec. 215.804-6 [Amended].

16. Section 215.804-6 is amended by revising in paragraph (b)(2)(A)
the words ``Air Force--AFLCP/AFSCP 800-15'' to read ``Air Force--AFMCP
800-15.''
17. Section 215.807 is amended by adding a new paragraph (b) to
read as follows:

Sec. 215.807 Prenegotiation objectives.

* * * * *
(b) Prenegotiation objectives, including objectives related to
disposition of findings and recommendations contained in preaward and
postaward contract audit and other advisory reports, shall be
documented and reviewed in accordance with Departmental procedures.

Sec. 215.871-3 [Amended].

18. Section 215.871-3(c) is amended by revising the reference
statement `'(see section 250.871-4)'' to read ``(see section 215.871-
4)''.

215.971-3 [Amended].

19. Section 215.971-3 is amended by revising in paragraph (d)(2)
the reverence ``(see also section 217.7406-6(a))'' to read ``(see also
section 217.7404-6(a)).''
20. Section 215.975 is amended by revising the entries in paragraph
(b) under the headings ARMY and AIR FORCE to read as follows:

215.975 Reporting profit and fee statistics.

* * * * *
(b) * * *

------------------------------------------------------------------------
Contracting office Designated office
------------------------------------------------------------------------
Army:
All.............................. Army Procurement Research and
Analysis Office, ATTN: SFRD-
KPR(WGL), Bldg 12500, C Wing, Ft.
Lee, VA 23801-6045.

*****
Air Force:
Air Force Materiel Command (all Air Force Materiel Command, 645
field offices). CCSG/SCOS, ATTN: J010 Clerk, 2721
Sacramento Street, Wright-
Patterson Air Force Base, Ohio
45433.

*****
------------------------------------------------------------------------

PART 219--SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS CONCERNS

21. Section 219.000 is amended by revising the introductory text to
read as follows:

219.000 Scope of part.

This part also implements 10 U.S.C. 2323, which sets a goal for DoD
for each of fiscal years 1987 through 2000 to--
* * * * *
22. Section 219.502-2-70 is amended by revising paragraph (a)
introductory text and by revising paragraph (c) and adding paragraph
(d) to read as follows:

219.502-2-70 Total set-asides for small disadvantaged business
concerns.

(a) Except as provided in paragraphs (b) and (c), the contracting
officer shall set aside an acquisition for small disadvantaged
businesses when there is a reasonable expectation that--
* * * * *
(c) Pursuant to 10 U.S.C. 2323(g), the Office of Small and
Disadvantaged Business Utilization, Office of the Under Secretary of
Defense (Acquisition & Technology), is responsible for determining
whether use of small disadvantaged business (SDB) set-asides has caused
a particular industry category to bear a disproportionate share of the
contracts awarded by a particular contracting activity to achieve its
SDB goal. Upon making a determination that a particular industry is
bearing a disproportionate share, the OUSD(A&T) SADBU shall limit the
use of total SDB set-asides in the affected industry category, at the
contracting activity. This limitation shall not apply to solicitations
that already had been synopsized as SDB set-asides. Forward requests
for a determination through agency channels to OUSD(A&T) SADBU and
include--
(1) The standard industrial (SIC) code(s) affected;
(2) Supporting information to justify the request, including
dollars and percentages by the contracting activity, under the affected
SIC code(s) for the previous two fiscal years and current fiscal year
to date for--
(i) Total awards;
(ii) Total awards to small businesses;
(iii) Total awards to SDBs; and
(iv) Awards to SDBs under the SDB set-aside program.
(d) See 205.207(d) for information on Commerce Business Daily
synopsis.
23. Section 219.705-2 is revised to read as follows:

219.705-2 Determining the need for a subcontracting plan.

(d) See 215.605 for unique DoD requirements.
24. Section 219.808-1 is amended by adding a paragraph (b)(iv) to
read as follows:

219.808-1 Sole source.

(b) * * *
(iv) Upon award of a contract using these procedures, the
contracting officer shall prepare a report to include the following
information (RCS DD-ACQ(AR)1930). Accumulate reports at each buying
activity and forward, at the end of each fiscal quarter, through agency
channels to the Director, Office of Small and Disadvantaged Business
Utilization, Office of the Under Secretary of Defense for Acquisition
and Technology.

(A) Title/Description of construction project.
(B) Estimated dollar amount of the contract.
(C) Name of contracting activity and contracting officer.
(D) Name and address of contractor.
(E) Contract number and award date.
25. Section 219.1005(a) is revised to read as follows:

219.1005 Applicability.

(a) Dredging (SIC 1629, FPDS Y216 and Z216) applies only to the
Army Corps of Engineers.
* * * * *
26. Subpart 219.71 is revised to read as follows:
Sec.
219.7100 Scope.
219.7101 Policy.
219.7102 General.
219.7103 Procedures.
219.7103-1 General.
219.7103-2 Contracting officer responsibilities.
219.7104 Developmental assistance costs eligible for reimbursement
or credit.
219.7105 Reporting.

Subpart 219.71--Pilot Mentor-Protege Program

Sec. 219.7100 Scope.

This subpart implements the Pilot Mentor-Protege Program
established under section 831 of the National Defense Authorization Act
for Fiscal Year 1991, Public Law 101-510, as amended. The purpose of
the Program is to provide incentives for DoD contractors to assist
small disadvantaged businesses in enhancing their capabilities and to
increase participation of such firms in Government and commercial
contracts. Qualified organizations employing the severely disabled, as
defined in section 8064A of Public Law 102-172, are also eligible to
participate as protege firms.

Sec. 219.7101 Policy.

DoD policy and procedures for implementation of the Program are
contained in Appendix I to chapter 2, Policy and Procedures for the DoD
Pilot Mentor-Protege Program.

Sec. 219.7102 General.

The Program includes--
(a) Mentor firms, which are prime contractors with at least one
active subcontracting plan negotiated under FAR subpart 19.7.
(b) Protege firms, which are small disadvantaged business (SDB)
concerns or qualified organizations employing the severely disabled,
eligible for receipt of Federal contracts and selected by the mentor
firm.
(c) Mentor-protege agreements, which establish a developmental
assistance program for a protege firm.
(d) Incentives, which may be provided to mentor firms by the DoD
including:
(1) Reimbursement for developmental assistance costs through--
(i) A separate contract;
(ii) A separately priced contract line item on a DoD contract; or
(iii) Inclusion of program cost in indirect expense pools.
(2) Credit toward SDB subcontracting goals, established under a
subcontracting plan negotiated under FAR subpart 19.7, for
developmental assistance costs which are either reimbursed through
indirect expense pools or are not reimbursed; or
(3) A combination of reimbursement and credit.

Sec. 219.7103 Procedures.

Sec. 219.7103-1 General.

The procedures for application, acceptance, and participation in
the program are in appendix I to chapter 2, Policy and Procedures for
the DoD Pilot Mentor-Protege Program. The Director of Small and
Disadvantaged Business Utilization, Office of the Under Secretary of
Defense (Acquisition and Technology) approves contractors as mentor
firms, approves mentor-protege agreements, and forwards approved
mentor-protege agreements to the contracting officer when program
funding is available through a DoD Program Manager.

Sec. 219.7103-2 Contracting officer responsibilities.

Contracting officers shall--
(a) Negotiate an advance agreement on the treatment of
developmental assistance costs for credit, reimbursement, or both, if
the mentor firm proposes such an agreement, or delegate authority to
negotiate to the administrative contracting officer (see FAR section
31.109).
(b) Modify (without consideration) applicable contract(s) to
incorporate the clause at section 2523.232-7005, Reimbursement of
Subcontractor Advance Payments-DoD Pilot Mentor-Protege Program, when
advance payments are provided by a mentor firm to a protege firm under
the Program and the mentor firm requests reimbursement of advance
payments.
(c) Modify (without consideration) applicable contract(s) to
incorporate other than customary progress payments for small
disadvantaged businesses in accordance with FAR section 32.504(c) if
such payments are provided by a mentor firm to a protege firm and the
mentor firm requests reimbursement.
(d) Modify applicable contract(s) to establish a contract line item
for reimbursement of developmental assistance costs--
(1) When funds have been made available for that purpose by a DoD
program manager; and
(2) The contractor has an approved mentor-protege agreement.
(e) Advise contractors of reporting requirements in appendix I to
chapter 2.

Sec. 219.7104 Developmental assistance costs eligible for
reimbursement or credit.

(a) Developmental assistance provided under an approved mentor-
protege agreement is distinct from, and shall not duplicate, any effort
that is the normal and expected product of the award and administration
of the mentor firm's subcontracts. Costs associated with the latter
shall be accumulated and charged in accordance with the contractor's
approved accounting practices. Mentor firm costs which are eligible for
reimbursement are set forth in appendix I to chapter 2.
(b) Before incurring any costs under the Program, mentor firms need
to establish the accounting treatment of developmental assistance costs
eligible for reimbursement or credit. Advance agreements are
encouraged. To be eligible for reimbursement under the Program, costs
must be incurred before October 1, 1996.
(c) If the mentor firm is suspended or debarred while performing
under an approved mentor-protege agreement, the mentor firm may not be
reimbursed or credited for developmental assistance costs incurred more
than 30 days after the imposition of the suspension or debarment.
(d) Developmental assistance costs, incurred by a mentor firm
before October 1, 1999, that are eligible for crediting under the
Program may be credited towards subcontracting plan goals as set forth
in appendix I to chapter 2.

Sec. 219.7105 Reporting.

Mentor firms shall report on the progress made under active mentor-
protege agreements semi-annually as indicated in section I-111 of
appendix I to chapter 2.

PART 222--APPLICATION OF LABOR LAWS TO GOVERNMENT ACQUISITIONS

Sec. 222.101-3 [Amended]

27. and 28. Section 222.101-3 is amended by revising in paragraph
(3) the reference ``RCS DD P&L (AR) 1153'' to read ``Report Control
Symbol DD-ACQ (AR) 1153.''

PART 223--ENVIRONMENT, CONSERVATION, OCCUPATIONAL SAFETY, AND DRUG-
FREE WORKPLACE

Sec. 223.370-4 [Amended]

29. Section 223.370-4 is amended in paragraph (b)(1)(ii) by
revising the last sentence in the introductory text to read ``The
contracting officer shall make a decision after considering
recommendations of the ACO and safety personnel responsible for
ammunition and explosive safety.''

PART 225--FOREIGN ACQUISITION

Sec. 225.302 [Amended]

30. Section 225.302 is amended by revising in paragraph (b)(i) the
entries under the heading Air Force to read ``Commander, U.S. Air
Forces in Europe, Commander, Pacific Air Force, Commander, Air Mobility
Command, Commander, Air Force Materiel Command, Commander, Air Combat
Command, Commander, Air Force Space Command''; and by revising the
entry ``Defense Advanced Research Projects Agency, Director, Contracts
Management Office'' to read ``Advanced Research Projects Agency,
Director, Contracts Management Office.''
31. Section 225.702 is revised to read as follows:

Sec. 225.702 Restrictions.

See Section 209.104-1(g)(i) for restrictions on contracting with
firms owned or controlled by foreign governments that support
terrorism. See Section 209.104-1(g)(ii) for prohibition on award of a
DoD contract under a national security program to a company owned by an
entity controlled by a foreign government when access to proscribed
information is required to perform the contract.

Sec. 225.703 [Removed]

32. Section 225.703 is removed.

Sec. 225.704 [Removed]

33. Section 225.704 is removed.

Sec. 225.704-70 [Removed]

34. Section 225.704-70 is removed.
35. Section 225.7002 is revised to read as follows:

Sec. 225.7002 Restrictions on food, clothing, fabrics, specialty
metals and hand or measuring tools.

36. Section 225.7702-1 is amended by adding paragraph (c) to read
as follows:

Sec. 225.7002-1 Restrictions.

* * * * *
(C) Do not acquire hand or measuring tools that were not produced
in the United States or its possessions.
37. Section 225.7002-2 is amended by revising paragraph (a); by
revising paragraph (d); and by revising paragraph (i) to read as
follows:

Sec. 225.7002-2 Exceptions.

* * * * *
(a) Any of the items in 225.7002-1(a) or (b), if the Secretary
concerned, or designee, determines that they cannot be acquired when
needed in a satisfactory quality and sufficient quantity grown or
produced in the United States or its possessions at U.S. market prices.
* * * * *
(d) Acquisitions of those supplies listed in FAR Section
25.108(d)(1), unless the supplies are hand or measuring tools.
* * * * *
(i) Purchases of specialty metals and chemical warfare protective
clothing when the acquisition furthers an agreement with a qualifying
country (see Section 225.872).
38. Section 225.7002-4 is amended by adding introductory text; and
by adding paragraph (d) to read as follows:

Sec. 225.7002-4 Contract clauses.

Unless an exception is known to apply--
* * * * *
(d) Use the clause at 252.225-7015, Preference for Domestic Hand or
Measuring Tools, in all solicitations and contracts over the threshold
in FAR Section 13.000 calling for delivery of hand or measuring tools.

Sec. 225.7003 [Removed and Reserved]

39. Section 225.7003 is removed and reserved.

Sec. 225.7003-1 [Removed]

40. Section 225.7003-1 is removed.

Sec. 225.7003-2 [Removed]

41. Section 225.7003-2 is removed.

Sec. 225.7004 [Amended]

42. Section 225.7004 is amended by revising in paragraph (a) the
reference ``10 U.S.C. 2507(d)'' to read ``10 U.S.C. 2534(c).''

Sec. 225.7007 [Amended]

43. Section 225.7007 is amended by revising in paragraph (a) the
reference ``(10 U.S.C. 2507a(a))'' to read ``(10 U.S.C. 2534(a)).''

Sec. 225.7010 [Amended]

44. Section 225.7010 is amended by revising in the introductory
paragraph the reference ``10 U.S.C. 2507(b)'' to read ``10 U.S.C.
2534(b).''
45. Section 225.7011 is revised to read as follows:

Sec. 225.7011 Restriction on Ballistic Missile Defense research,
development, test, and evaluation.

Sec. 225.7011-1 [Amended]

46. Section 225.7011-1 is amended by revising the words ``Strategic
Defense Initiative'' to read ``Ballistic Missile Defense.''

Sec. 225.7011-2 [Amended]

47. Section 225.7011-2 is amended by revising in paragraph (a) the
words ``Strategic Defense Initiative (SDI)'' to read ``Ballistic
Missile Defense (MDB); and by revising in paragraph (c) the acronym
``SDI'' to read ``BMD.''

Sec. 225.7011-4 [Amended]

48. Section 225.7011-4 is amended by revising in paragraph (b)
introductory text the words ``SDI Organization, Attn: SDIO/IPM'' to
read ``Ballistic Missile Defense Organization, Attn: BMDO/DRI.''

Sec. 225.7011-5 [Amended]

49. Section 225.7011-5 is amended by revising the words ``Strategic
Defense Initiative'' to read ``Ballistic Missile Defense''; and by
revising the acronym ``SDI'' to read ``BDM.''

Sec. 225.7014 [Removed and Reserved]

50. Section 225.7014 is removed and reserved.

Sec. 225.7014-1 [Removed]

51. Section 225.7014-1 is removed.

Sec. 225.7014-2 [Removed]

52. Section 225.7014-2 is removed.

Sec. 225.7014-3 [Removed]

53. Section 225.7014-3 is removed.

Sec. 225.7016-1 [Amended]

54. Section 225.7016-1 is amended by revising in the introductory
paragraph the reference ``10 U.S.C. 2507(f)'' to read ``10 U.S.C.
2534(e).''
55. Section 225.7018-1 is revised to read as follows:

Sec. 225.7018-1 Restriction.

In accordance with section 9108 of Public Law, 102-396, no fiscal
year 1993 funds shall be used to procure four ton dolly jacks
manufactured outside the United States.
56. Section 225.7018-3 is revised to read as follows:

Sec. 225.7018-3 Contract clause.

Use the clause at section 252.225-7033, Restriction on Acquisition
of Four Ton Dolly Jacks, in solicitations and contracts that use fiscal
year 1993 funds for the acquisition of four tone dolly jacks.
57. Sections 225.7020, 225.7020-1, and 225.7020-2 are added to read
as follows:

Sec. 225.7020 Restriction on coal and petroleum pitch carbon fiber.

Sec. 225.7020-1 Restriction.

(a) Section 8040A of Public Law 102-172, and section 9040A of
Public Law 102-396, require the Secretary of Defense to take such
action as necessary to ensure by fiscal year 1994 that a minimum of 75
percent of the annual DoD requirements for coal and petroleum pitch
carbon fibers is acquired from domestic sources.
(b) To meet this goal, all new major systems must use U.S. or
Canadian manufacturers or producers for all coal and petroleum pitch
carbon fiber requirements.

Sec. 225.7020-2 Contract clause.

(a) Use the clause of section 252.224-7034, Restriction on
Acquisition of Coal and Petroleum Pitch Carbon Fiber, in all
acquisitions for major systems (as defined in FAR part 34) that are not
yet in production (milestone III as defined in DoDI section 5000.2,
Defense Acquisition Program Procedures.)
(b) Contracting officers may, with the approval of the head of the
contracting activity, waive, in whole or in part, the manufacturing/
production requirement in paragraph (b) of the clause at section
252.225-7034. For example, a waiver is justified if a qualified U.S. or
Canadian source cannot meet scheduling requirements.

PART 226--OTHER SOCIOECONOMIC PROGRAMS

58. Section 226.7000 is revised to read as follows:

Sec. 226.7000 Scope of subpart.

This subpart implements the historically black college and
university (HBCU) and minority institution (MI) provisions of 10 U.S.C.
2323, which--
(a) Set a goal for DoD for each of fiscal years 1987 through 2000
to award five percent of contract and subcontract dollars to small
disadvantaged business concerns and HBCU/MIs; and
(b) Require a separate goal, for each of fiscal years 1991 through
2000, as a subset of the five percent goal, for the participation of
HBCUs and MIs.

PART 231--CONTRACT COST PRINCIPLES AND PROCEDURES

59. Section 231.100-70 is revised to read as follows:

Sec. 231.100-70 Contract clause.

Use the clause at 252.231-7000, Supplemental Cost Principles, in
all solicitations and contracts which are subject to the principles and
procedures described in FAR subparts 31.1, 31.2, 31.6, or 31.7.

Sec. 231.205-18 [Amended]

60. Section 231.205-18 is amended to revise in paragraph (c)(2)
introductory text the reference section ``255.7303-2'' to read section
``225.7303-2.''
61. Section 231.7000 is revised to read as follows:

Sec. 231.7000 Scope of subpart.

(a) This subpart implements 10 U.S.C. 2324(a) through (d). It
covers the assessment of penalties against contractors which include
unallowable indirect costs in--
(1) Final indirect cost rate proposals, or
(2) The final statement of costs incurred or estimated to be
incurred under a fixed-price incentive contract.
(b) This subpart applies to all DoD contracts awarded after
February 26, 1987, in excess of $100,000, except fixed-price contracts
without cost incentives.
(c) The status of the Government's audit of the final indirect cost
proposal will determine whether penalties should be assessed under
sections 231.7001 or 231.7002. An audit will be deemed to be formally
initiated when the Government provides the contractor with written
notice that audit work on a specific final indirect cost proposal has
begun or the Government holds an audit entrance conference with the
contractor.

Sec. 231.7001 [Amended]

62. Section 231.7001 is amended by revising the word ``initiates''
to read ``initiated.''
63. Section 231.7002-1 is amended by revising paragraphs (a)(1)(i)
and (b) to read as follows:

Sec. 231.7002-1 General.

(a) * * *
(1) * * *
(i) The amount of the disallowed costs allocated to contracts that
are subject to this subpart for which an indirect cost proposal has
been submitted, plus
* * * * *
(b) These penalties are in addition to other administrative, civil,
and criminal penalties provided by law.
* * * * *

Sec. 231.7002-2 [Amended]

64. Section 231.7002-2 is amended by redesignating paragraph (c) as
paragraph (b) and removing in redesignated paragraph (b) introductory
text the word ``rate'' between the word ``cost'' and the word
``proposals.''

Sec. 231.7002-3 [Amended]

65. Section 231.7002-3 is amended by revising the parenthetical
statement in paragraph (b)(1) ``(see FAR section 42.705-2)'' to read
``(see section 242.705-2).''

Sec. 231.7002-4 [Amended]

66. Section 231.7002-4 is amended by inserting in paragraph (b)
between the word ``of'' and the word ``Treasury'' the word ``the.''

Sec. 231.7002-5 [Amended]

67. Section 231.7002-5 is amended by inserting in the parenthetical
statement in paragraph (c)(1) between the word ``include'' and the word
``satisfactory'' the words ``the types of controls required for.''

PART 233--PROTESTS, DISPUTES, AND APPEALS

Sec. 233.1 [Removed]

68. Subpart 233.1 is removed.
69. Section 233.7000 is amended by revising paragraph (a) to read
as follows:

Sec. 233.7000 Policy.

(a) Before payment can be made on a claim (see definition in FAR
33.201), a request for equitable adjustment to contract terms, a
request for relief under Public Law 85-804 (see FAR part 50), or
another similar request that exceeds $100,000, 10 U.S.C. 2410e requires
that--
(1) The contractor certify the claim or request as required by FAR
section 33.207; and
(2) The person certifying the claim or request be an individual who
is authorized to bind the contractor and who has knowledge of--
(i) The basis of the claim or request;
(ii) The accuracy and completeness of the supporting data; and
(iii) The claim or request.
* * * * *

PART 235--RESEARCH AND DEVELOPMENT CONTRACTING

70. Section 235.006 is amended by revising paragraphs (b)(i)(C)(1)
introductory text, (b)(ii) and (b)(iii) to read as follows:

Sec. 235.006 Contracting methods and contract type.

* * * * *
(b)(i) * * *
(C) * * *
(1) By the Under Secretary of Defense (Acquisition and Technology)
(USD(A&T)) for--
* * * * *
(ii) The contracting officer must obtain USD(A&T) approval of the
Government's prenegotiation position before negotiations begin and must
obtain USD(A&T) approval of the negotiated agreement with the
contractor before the agreement is executed for any action that is--
(A) An increase of more than $250 million in the price or ceiling
price of a fixed-price type development contract, or a fixed-price type
contract for the lead ship of a class;
(B) A reduction in the amount of work under a fixed-price type
development contract or a fixed-price type contract for the lead ship
of a class, when the value of the work deleted is $100 million or more;
or
(C) A repricing of fixed-price type production options to a
development contract, or a contract for the lead ship of a class, which
increases the price or ceiling price by more than $250 million for
equivalent quantities.
(iii) Notify the USD(A&T) of an intent not to exercise a fixed-
price production option on a development contract for a major weapon
system reasonably in advance of the expiration of the option exercise
period.
71. Section 235.015 is revised to read as follows:

Sec. 235.015 Contracts for research with educational institutions and
nonprofit organizations.

(b) Basic agreements.
(3) When using a basic agreement--
(i) Incorporate it by reference in section I of the contract; and
(ii) Incorporate any special clause requirements in section H.
71(a). Section 235.015-71 is amended by revising paragraph (i)(3)
to read as follows:

Sec. 235.015-71 Short form research contract (SFRC).

* * * * *
(i) * * *
(3) The following clauses should be incorporated by reference in
all SFRC contracts of $100,000 or more. Clauses with a double asterisk
(**) apply to nonprofit organizations only.

FAR 52.203-12 Limitation on Payments to Influence Certain Federal
Transactions.
252.203-7000 Statutory Prohibitions on Compensation to Former
Department of Defense Employees
FAR 52.222-2 Payment for Overtime Premiums (The word ``zero'' is
inserted in the blank space indicated by an asterisk.)
FAR 52.223-2 Clean Air and Water Act (Applies if contract amount
exceeds the dollar amount set forth in the preamble to the clause.)
**FAR 52.230-2 Cost Accounting Standards (If contract is not exempt
under 48 CFR chapter 99 (appendix B, FAR looseleaf edition), subpart
9903.201.)
**FAR 52.230-3 Disclosure and Consistency of Cost Accounting Practices
(If contract is not exempt under 48 CFR chapter 99 (appendix B, FAR
looseleaf edition), subpart 9903.201.)
**FAR 52.230-5 Administration of Cost Accounting Standards (If
contract is not exempt under 48 CFR chapter 99 (appendix B, FAR
looseleaf edition), subpart 9903.201.)
252.231-7001 Penalties for Unallowable Costs.
252.233-7000 Certification of Claims and Requests for Adjustment or
Relief.
* * * * *

PART 236--CONSTRUCTION AND ARCHITECT-ENGINEER CONTRACTS

72. Section 236.602-1 is amended by adding a new paragraph
(a)(i)(6)(C) to read as follows:

Sec. 236.602-1 Selection criteria.

(a)(i) * * *
(6) * * *
(C) Consider the extent to which potential contractors identify and
commit to small business and to small disadvantaged business,
historically black college and university, or minority institution
performance of the contract, whether as a joint venture, teaming
arrangement, or subcontractor.

PART 242--CONTRACT ADMINISTRATION

73. Section 242.205(1) is revised to read as follows:

Sec. 242.205 Designation of the paying office.

(1) For contracts assigned to the Defense Contract Management
Command (DCMC), designate as the paying office--
(i) The cognizant Defense Finance and Accounting Service (DFAS)
payment office as specified in the DoD Directory of Contract
Administration Services Components (DLAH section 4105.4), for contracts
funded with DoD funds;
(ii) The department or agency payment office if authorized by
defense financial management regulations or if the contract is funded
with non-DoD funds; or
(iii) Multiple paying offices under paragraphs (1)(i) and (ii) of
this section--if the contract is funded with both DoD and non-DoD
funds.
* * * * *

Sec. 242.1203 [Amended]

74. Section 242.1203 is amended to revise in paragraph (b)(1) the
Air Force address ``HQ, U.S. Air Force Systems Command, Attn: PKCP,
Andrews AFB, DC 20334-5000'' to read ``HQ Air Force Materiel Command,
Attn: AFMC/PKM, 4375 Chidlaw Road, suite 6, Wright Patterson AFB, OH
45433-5006.''

PART 243--CONTRACT MODIFICATIONS

75. Section 243.405-70 is revised to read as follows:

Sec. 243.205-07 Engineering change proposals.

Engineering changes can originate with either the contractor or the
Government. In either case, the Government will need detailed
information from the contractor for evaluation of the technical, cost,
and schedule effects of implementing the change. When the contracting
officer wants this information submitted in the format prescribed by
MIL-STD-973, use the clause at 252.243-7000, Engineering Change
Proposals. Use the clause with its Alternate I, when appropriate, to
discourage submission of a large number of small dollar, contractor
originated engineering change proposals.

PART 245--GOVERNMENT PROPERTY

Sec. 245.310 [Amended]

76. Section 245.310 is amended to revise in paragraph (c)(ii)(A)
the word ``Contract'' to read ``Contact.''
77. Section 245.505-14 is revised to read as follows:

Sec. 245.505-14 Reports of Government property.

(a) Use the clause at 252.245-7001, Reports of Government Property,
in all solicitations and contracts containing one of the following
clauses--
(1) FAR Section 52.245-2, Government Property (Fixed-Price
Contracts);
(2) FAR Section 52.245-5, Government Property (Cost Reimbursement,
Time-and-Material, or Labor-Hour Contracts;
(3) FAR Section 52.245-7, Government Property (Consolidated
Facilities);
(4) FAR Section 52.245-10, Government Property (Facilities
Acquisition); or
(5) FAR Section 52.245-11, Government Property (Facilities Use).
78. Section 245.607-2 is revised to read as follows:

Sec. 245.607-2 Recovering precious metals.

(b) Precious metals are silver, gold, platinum, palladium, rhodium,
iridium, osmium, and ruthenium.
(i) At the beginning of every fiscal year, the Defense
Reutilization and Marketing Service (DRMS) will provide each contract
administration office with disposition instructions for certain
categories of precious metals-bearing property, including scrap and
usable items containing recoverable quantities of these metals. The
disposition instructions--
(A) Will remain in effect for the entire fiscal year, unless
modified by DRMS; and
(B) Will contain a fund citation to be used when disposition
requires shipment of precious metals-bearing property for recovery.
(ii) Plant clearance officers shall obtain disposition instructions
for precious metals-bearing property not covered by the annual
disposition instructions from the Defense Reutilization and Marketing
Service, Attn: DRMS-OC, 74 N. Washington Avenue, Battle Creek, MI
49017-3092.

PART 247--TRANSPORTATION

79. Section 247.105 is amended by revising paragraph (a)(iii)(A)
and the Air Force entry in paragraph (a)(iii)(D) to read as follows:

Sec. 247.105 Transportation assistance.

(a)(i) * * *
(ii) * * *
(iii) * * *
(A) Originating in CONUS, request assistance from the appropriate
military activity; i.e., the Air Mobility Command (AMC), Military
Sealift Command (MSC), MTMC, or the military service sponsoring the
cargo;
* * * * *
(D) * * *
Air Force
Applicable overseas Air Force Command, HQ PACAF/LGT, 25 East
Street, suite I-326, Hickam AFB, HI 96853-5427.
HQ USAFE/LGT, Unit 3050, Box 105, APO AE 09049-0105.
HQ AFSPACECOM/LGT, 150 Vandenberg Street, suite 1105, Peterson
AFB, CO 80914-4435.
* * * * *

PART 248--VALUE ENGINEERING

Sec. 248.270 [Amended]

80. Section 248.270 is amended by revising the reference ``MIL-STD-
480 or 481'' to read ``MIL-STD-973.''

PART 249--TERMINATION OF CONTRACTS

Sec. 249.105-1 [Amended]

81. Section 249.105-1 is amended by revising in the introductory
text the reference ``RCS:DD(I&L)(Q&AR)1411'' to read ``Report Control
Symbol DD-ACQ (AR) 1411.''
82. Section 249.7001 is amended by revising paragraphs (b)(1),
(b)(4) and (b)(12) to read as follows:

Sec. 249.7001 Congressional notification on significant contract
terminations.

* * * * *
(b) * * *
(1) Army--Chief, Legislative Liaison (SALL-SPA)
* * * * *
(4) Advanced Research Projects Agency--CMO
* * * * *
(12) Ballistic Missile Defense Organization--Director of Contracts
(BMDO-DCT)
* * * * *
83. Section 249.7003 is revised to read as follows:

Sec. 249.7003 Notification of proposed program termination or
reduction.

(a) Section 1372 of the National Defense Authorization Act for
Fiscal Year 1994 (Pub. L. 103-160), is intended to help establish
benefit eligibility under the Job Training Partnership Act (29 U.S.C.
1661 and 1662) for employees of DoD contractors and subcontractors
adversely affected by termination or substantial reductions in major
defense programs.
(b) Departments and agencies are responsible for establishing
procedures to:
(1) Determine which defense programs are proposed for termination
or substantial reduction as a result of the submission of the
President's budget, and which are likely to be terminated or
substantially reduced as a result of enactment of an appropriations
act.
(2) Within 90 days of such submission or enactment, provide notice
of the proposed or anticipated termination or reduction--
(i) By general notice in the Federal Register;
(ii) In case of an enactment, to the Secretary of Labor; and
(iii) Through the contracting officer to each prime contractor,
unless in the case of an enactment, notice was given at budget
submission.
(3) Within 90 days after an enactment provides sufficient funding
for a program, provide notice withdrawing the notices provided in
249.7003(b)(2)--
(i) By general notice in the Federal Register; and
(ii) Through the contracting officer to each prime contractor.
(c) The notification provided under (b)(2)(iii) shall be
substantially as follows:

Section 1372 of the Fiscal Year 1994 National defense
Authorization Act (Pub. L. 103-160) requires that each prime
contractor under a major defense program be notified if the program
is likely to be or proposed for termination or substantial
reduction. (The terms major defense program and substantial
reduction are defined in the notification of Proposed Program
Termination or Reduction clause of your contract (insert contract
number).)
You are hereby notified that the (insert program name) has been
(contracting officer to insert either (1) or (2))--
(1) proposed to be (insert ``terminated'' or ``substantially
reduced'') by the Fiscal Year (insert fiscal year) President's
budget; or
(2) identified as likely to be (insert ``terminated'' or
``substantially reduced'') by the Fiscal Year (insert fiscal year)
Defense Appropriations Act.
While this notice is provided pursuant to section 1372, the
impact on individual contracts has not yet been determined. This is
not a notice of termination under the Termination for Convenience or
Default clauses of your contract.
Your responsibilities upon receipt of this notice are set forth
in the Notification of Proposed Program Termination or Reduction
clause in your contract.

(d) Use the clause at section 252.249-7002, Notification of
Proposed Program Termination or Reduction, in all contracts under a
major defense program.

PART 250--EXTRAORDINARY CONTRACTUAL ACTIONS

Sec. 250.201 [Amended]

84. Section 250.201 is amended by revising in paragraph (b) the
reference ``FAR subpart 50.4'' to read ``FAR subpart 50.2.''

Sec. 250.303 [Amended]

85. Section 250.303 is amended by revising in paragraph (5) the
phrase ``Defense Advanced Research Projects Agency--Director, CMO'' to
read ``Advanced Research Projects Agency--Director, CMO''; and by
revising in paragraph (13) the phrase ``Strategic Defense Initiative
Organization, Director, SDIO'' to read ``Ballistic Missile Defense
Organization--Director, BMDO.''

PART 251--USE OF GOVERNMENT SOURCES BY CONTRACTORS

Sec. 251.106 [Removed]

86. Section 251.106 is removed.

PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

Sec. 252.203-7001 [Amended]

87. Section 252.203-7001 is amended by removing in paragraph (h)
the extra word ``the'' between the word ``contracting'' and the word
``The.''

Sec. 252.210-7005 [Removed]

88. Section 252.210-7005 is removed.

Sec. 252.217-7026 [Amended]

89. Section 252.217-7026 is amended by revising at the end of the
clause the words ``(End of clause)'' to read ``(End of provision)''.

Sec. 252.219-7003 [Amended]

90. Section 252.219-7003 is amended by revising the clause date to
read ``(MAY 1994)'' and by revising the phrase ``section 832 of the FY
90 DoD Authorization Act, Public Law 101-189'' in paragraph (c)(2) to
read ``10 U.S.C. 2323a.''

Sec. 252.219-7008 [Removed and Reserved]

91. Section 252.219-7008 is removed and reserved.
92. Section 252.223-7002 is amended by revising the clause date to
read ``(MAY 1994)''; by redesignating paragraphs (a)(2)(Iv) and
(a)(2)(v) as paragraphs (a)(2)(iv) and (a)(2)(vi) respectively; by
adding a new paragraph (a)(2)(iv) and by revising paragraph (b)(1) to
read as follows:

Sec. 252.233-7002 Safety precautions for ammunition and explosives.

* * * * *
(a) * * *
(2) * * *
(iv) Oxidizers;
* * * * *
(b) * * *
(1) The Contractor shall comply with the requirements of the DoD
Contractors' Safety Manual for Ammunition and Explosives, DoD 4145.26-
M, hereafter referred to as ``the manual,'' in effect on the date of
the solicitation for this contract. The Contractor shall also comply
with any other additional requirements included in the schedule of this
contract.
* * * * *

Sec. 252.223-7006 [Amended]

93. Section 252.223-7006 is amended by revising in the introductory
sentence the reference ``223.7013'' to read ``223.7103.''

Sec. 252.225-7011 [Removed and Reserved]

94. Section 252.225-7011 is removed.
95. Section 252.225-7012 is amended by revising the clause date to
read ``(MAY 1994)'' and by revising paragraph (b)(1) to read as
follows:

Sec. 252.225-7012 Preference for certain domestic commodities.

* * * * *
(b) * * *
(1) To supplies listed in FAR section 25.108(d)(1), or other
supplies for which the Government has determined that a satisfactory
quality and sufficient quantity cannot be acquired as and when needed
at U.S. market prices;
* * * * *

Sec. 252.225-7015 [Amended]

96. Section 252.225-7015 is amended by revising the reference
section ``225.7003-2'' in the introductory statement to read section
``225.7002-4(d)''.

Sec. 252.225-7018 [Amended]

97. Section 252.225-7018 is amended by revising the clause date to
read ``(MAY 1994)''; by revising in the section title the words
``Strategic Defense Initiative'' to read ``Ballistic Missile Defense'';
by revising in the clause title the words ``Strategic Defense
Initiative'' to read ``Ballistic Missile Defense''; by revising in
paragraph (b) of the clause the words ``Strategic Defense Initiative
(SDI)'' to read ``Ballistic Missile Defense (BMD)''; and by revising in
paragraph (c) the two references ``SDI'' to read ``BMD.''

Sec. 252.225-7023 [Removed and Reserved]

98. Section 252.225-7023 is removed and reserved.

Sec. 252.225-7025 [Amended]

99. Section 252.225-7025 is amended by revising in paragraph (f)
the reference ``paragraph (g)'' to read ``paragraph (f)''.

Sec. 252.225-7031 [Amended]

100. Section 252.225-7031 is amended in the introductory
prescription statement by revising the reference Section ``225.770-4''
to read Section ``225.770-5.''
101. Section 252.225-7034 is added to read as follows:

Sec. 225.225-7034 Restriction on acquisition of coal and petroleum
pitch carbon fiber.

As prescribed in 225.7020-2, use the following clause:

Restriction on Acquisition of Coal and Petroleum Pitch Carbon Fiber
(May 1994)

(a) This clause applies only if the end product furnished under
this contract contains coal and petroleum pitch carbon fibers.
(b) Coal and petroleum pitch carbon fibers contained in the end
product shall be manufactured in the United States or Canada using
coal and petroleum pitch precursor produced in the United States or
Canada.
(c) The Contracting Officer may waive the requirement in
paragraph (b) in whole or in part. The Contractor may request a
waiver from the Contracting Officer by identifying the circumstances
and including a plan to qualify U.S. or Canadian sources
expeditiously.

(End of clause)

Sec. 252.227-7013 [Amended]

102. Section 252.227-7013, Alternate II, is amended by revising the
Alternate II date to read ``(May 1994)''; by revising paragraph
(b)(2)(i) introductory text; by revising paragraph (b)(3) introductory
text; by removing in the first sentence following the heading
``Government Purpose License Rights (SBIR Program)'' between the word
``after'' and the word ``acceptance'' the words ``delivery and'' and
inserting in that same sentence between the word ``in'' and the word
``DFARS'' the word ``the;'' by inserting in the second sentence
following the heading ``Government Purpose License Rights (SBIR
Program)'' between the word ``in'' and the word ``DFARS'' the word
``the''; by revising in the fourth sentence following the heading
``Government Purpose License Rights (SBIR Program)'' the words ``on
Government purpose license rights.'' to read ``of Government Purpose
License Rights.''; by adding to the end of the first sentence of
paragraph (c)(1)(i) the words ``for a period of four (4) years (or such
longer period as may be authorized by the Contracting Officers for good
cause shown) after acceptance of the last deliverable item under the
contract under which the computer software was generated.''; and by
revising paragraph (c)(2) to read as follows:

Sec. 252.227-7013 Rights to technical data and computer software.

* * * * *
Alternate II (May 1994)
* * * * *
(b) * * *
(2) * * *
(i) Unpublished technical data pertaining to items, components or
processes developed exclusively at private expense, and unpublished
computer software documentation related to computer software that is
acquired with restricted rights, other than such data included in
(b)(1) of this clause. The limited rights shall be for a period of four
(4) years (or such longer period as may be authorized by the
Contracting Officer for good cause shown) after acceptance of the last
deliverable item under the contract under which the technical data or
computer software documentation were generated. Limited rights shall be
effective provided that only the portion or portions of each piece of
data to which limited rights are to be asserted are identified (for
example, by circling, underscoring, or a note), and that the piece of
data is marked with the legend below containing:
* * * * *
(3) Government Purpose License Rights. After the expiration of the
four (4) year limited rights period established in paragraph (b)(2),
the Government shall have Government Purpose License Rights in any
technical data generated or required to be delivered under this
contract or any subcontract hereunder, which is not otherwise subject
to unlimited rights under subparagraph (b)(1) of this clause. The
Government shall not be liable for unauthorized use or disclosure of
the data by third parties. Government Purpose License Rights shall be
effective provided that only the portion or portions of each piece of
data to which such rights are to be asserted are identified (for
example, by circling, underscoring, or a note), and that the piece of
data is marked with the legend below:
* * * * *
(c) * * *
(2) Government Purpose License Rights. After the expiration of the
four (4) year restricted rights period established in paragraph (c)(1),
the Government shall have Government Purpose License Rights in:
(i) Computer software generated in the performance of experimental,
developmental or research work which was specified as an element of
performance in this or any Government contract or subcontract;
(ii) Computer software required to be originated or developed under
a Government contract, or generated as a necessary part of performing a
contract; and
(iii) Any other computer software required to be prepared or
delivered under this contract or any subcontract hereunder, which is
not otherwise subject to restricted or unlimited rights under
subparagraph (c)(1) or (c)(3) of this clause. Government Purpose
License Rights shall be effective provided that each unit of software
is marked with an abbreviated license rights legend reciting that the
use, duplication, or disclosure of the software is subject to the same
restrictions included in the same contract (identified by number) with
the same contractor (identified by name). The Government assumes no
liability for unauthorized use, duplication, or disclosure by others.
* * * * *

Sec. 252.231-7001 [Amended]

103. Section 252.227-7001 is amended by revising the clause date to
read ``(MAY 1994)''; by inserting in paragraph (b) between the word
``unallowable'' and the word ``costs'' the word ``indirect''; by
revising the period at the end of paragraph (d)(2)(i) to a comma and
the word ``and''; and by adding at the end of paragraph (e) the words
``allocated to this contract.''
104. Section 252.233-7000 is amended by revising the clause date to
read ``(May 1994)''; by revising the certification following paragraph
(a); and by revising paragraph (d) to read as follows:

Sec. 252.233-7000 Certification of claims and requests for adjustment
or relief.

* * * * *
(a) * * *
I certify that the claim is made in good faith, that the supporting
data are accurate and complete to the best of my knowledge and belief;
that the amount requested accurately reflects the contract adjustment
for which the Contracting believes the Government is liable; and that I
am duly authorized to certify the claim on behalf of the Contractor.

----------------------------------------------------------------------
(Official's Name)

----------------------------------------------------------------------
(Title)

* * * * *
(d) In those situations where no claim certification for the
purposes of 10 U.S.C. 2410e has been submitted prior to the inception
of a contract dispute, a single certification, using the language
prescribed by the Contract Disputes Act (41 U.S.C. 601 et seq.) but
signed by an individual who is authorized to bind the contractor and
who has knowledge of the basis of the claim or request, knowledge of
the accuracy and completeness of the supporting data, and knowledge of
the claim or request, will satisfy the certification requirements of
both statutes.
* * * * *

Sec. 252.234-7000 [Amended]

105. Section 252.234-7000 is amended by revising in paragraph
(a)(4) the acronym ``AFSCP'' to read ``AFMCP.''

Sec. 252.234-7001 [Amended]

106. Section 252.234-7001 is amended by revising in paragraph
(b)(1)(i) the acronym ``AFSCP'' to read ``AFMCP.''
107. Section 252.243-7000 is revised to read as follows:

Sec. 252.243-7000 Engineering change proposals.

As prescribed in 243.205-70, use the following clause:

Engineering Change Proposals (May 1994)

(a) The Contracting Officer may ask the Contractor to prepare
engineering change proposals for engineering changes within the
scope of this contract. Upon receipt of a written request from the
Contracting Officer, the Contractor shall prepare and submit an
engineering change proposal in accordance with the instructions of
MIL-STD-973, in effect on the date of contract award.
(b) The Contractor may initiate engineering change proposals.
Contractor initiated engineering change proposals shall include a
``not to exceed'' price* or a ``not less than'' price* and delivery
adjustment. If the Contracting Officer orders the engineering
change, the increase shall not exceed nor the decrease be less than
the ``not to exceed'' or ``not less than'' amounts**.
---------------------------------------------------------------------------

*Use a term suitable for the type of contract.
**In cost reimbursement type contracts, replace this sentence
with the following: ``Change orders issued under the Changes clause
of this contract are not an authorization to exceed the estimated
cost in the schedule unless there is a statement in the change
order, or other contract modification, increasing the estimated
cost.''
---------------------------------------------------------------------------

(c) When the price** of the engineering change is $500,000 or
more, the Contractor shall submit
(1) A completed SF 1411, Contract Pricing Proposal Cover Sheet,
and
(2) At the time of agreement on price*, a signed Certificate of
Current Cost or Pricing Data.

(End of clause)

Alternate I (May 1994)

As prescribed in 243.205-70, add the following paragraph (d) to
the basic clause:
(d) If the price* of a Contractor initiated engineering change
is ____________*** or less, the change, if ordered, shall be made at
no adjustment in the contract price*.
---------------------------------------------------------------------------

***Insert a percentage of the contract price or a dollar amount.

108. Section 252.245-7001 is added to read as follows:

Sec. 252.245-7001 Reports of Government Property.

As prescribed in 245.505-14(a), use the following clause:

Reports of Government Property (May 1994)

(a) The Contractor shall provide an annual report--
(1) For all DoD property for which the Contractor is accountable
under the contract;
(2) Prepared in accordance with the requirements of DD Form
1662, DoD Property in the Custody of Contractors, or approved
substitute, including instructions on the reverse side of the form;
(3) In duplicate, to the cognizant Government property
administrator, no later than October 31.
(b) The Contractor is responsible for reporting all Government
property accountable to this contract, including that at
subcontractor and alternate locations.

(End of clause)

109. Section 252.248-7000 is revised to read as follows:

Sec. 252.248-7000 Preparation of value engineering change proposals.

As prescribed in 248.270, use the following clause:

Preparation of Value Engineering Change Proposals (May 1994)

Prepare value engineering change proposals, for submission
pursuant to the value engineering clause of this contract, in the
format prescribed by the version of MIL-STD-973 in effect on the
date of contract award.

(End of clause)

110. Section 252.249-7002 is revised to read as follows:

Sec. 252.249-7002 Notification of proposed program termination or
reduction.

As prescribed in 249.7003(d), use the following clause:

Notification of Proposed Program Termination or Reduction (May 1994)

(a) Definitions. ``Major defense program'' means a program that
is carried out to produce or acquire a major system (as defined in
10 U.S.C. 2302) (see also DoD Instruction 5000.2, Defense
Acquisition Management Policies and Procedures, Acquisition
Categories I and II). ``Substantial reduction'' means a reduction of
25 percent or more in the total dollar value of contracts under the
program.
(b) Section 1372 of the National Defense Authorization Act for
Fiscal Year 1994 is intended to help establish benefit eligibility
under the Job Training Partnership Act (29 U.S.C. 1661 and 1662) for
employees of DoD contractors and subcontractors adversely affected
by termination or substantial reductions in major defense programs.
(c) Notice to employees and state and local officials. Within
two weeks after the Contracting Officer notifies the Contractor that
a major defense program is proposed for, or likely to be, terminated
or substantially reduced, the contractor shall provide notice of
such proposed or anticipated termination or reduction to--
(1) Each employee representative of the Contractor's employees
whose work is directly related to the program; or
(2) If there is no such representative, each such employee;
(3) The State dislocated worker unit or office described in
section 311(b)(2) of the Job Training Partnership Act (29 U.S.C.
1661(b)(2)); and
(4) The chief elected official of the unit of general local
government within which the adverse effect may occur.
(d) Notice to subcontractors. As soon as practicable, but not
later than 45 days after the Contractor receives the Contracting
Officer's notice of the proposed termination or reduction in a major
defense program, the Contractor shall--
(1) Provide notice of the proposed termination or reduction to
each first-tier subcontractor with a subcontract of $500,000 or more
under the program; and
(2) Require that each such subcontractor--
(i) Provide notice to each of its subcontractor with a
subcontract of $100,000 or more under the program; and
(ii) Impose a similar notice and flowdown requirement to
subcontractors with subcontracts of $100,000 or more.
(e) The notice provided an employee under paragraph (c) of this
clause shall have the same effect as a notice of termination to the
employee for the purposes of determining whether such employee is
eligible for training, adjustment assistance, and employment
services under section 325 or 325A of the Job Training Partnership
Act (29 U.S.C. 1662d, 1662d-1). If the Contractor has specified that
the proposed program termination or reduction is not likely to
result in plant closure or mass layoff, as defined in 29 U.S.C.
2101, the employee shall be eligible only for services under section
314(b) and paragraphs (1) through (14), (16), and (18) of section
314(c) of the Job Training Partnership Act (29 U.S.C. 1661c(b) and
paragraphs (1) through (14), (16), and (18) of section 1661c(c)).
(f) If the Contracting Officer subsequently withdraws a notice
referred to in paragraphs (c) and (d) of this clause, the
Contractor, as soon as practicable but not later than two weeks
after receipt of the withdrawal notice, shall provide notice of the
withdrawal to--
(1) The representatives, employees, officers, officials, and
subcontractors specified in paragraphs (c) and (d) of this clause;
and
(2) Each grantee under section 325(a) or 325A(a) of the Job
Training Partnership Act (29 U.S.C. 1662d, 1662d-1), which provides
training, adjustment assistance, and employment services to the
employees.
(g) An employee who receives notice of withdrawal shall not be
eligible for training, adjustment assistance, or employment services
under section 325 or 325A of the Job Training Partnership Act (29
U.S.C. 1662d, 1662d-1), beginning on the date the employee receives
such notice.

(End of clause)

PART 253--FORMS

Sec. 253.204-70 [Amended]

111. Section 253.204-70 is amended by revising in paragraph
(b)(12)(iii)(B) the words ``Strategic Defense Initiative (SDI)'' to
read ``Ballistic Missile Defense Organization.''

Sec. 253.215-70 [Amended]

112. At the end of section 253.215-70, section 253.303-346 is
removed from the DFARS Form List.

Sec. 253.215-70 [Amended]

113. At the end of section 253.215-70, section 253.303-347 is
removed from the DFARS Form List.

Appendix B to Chapter 2 [Amended]

114. DFARS Appendix B to Chapter 2 Part 4--DEFENSE LOGISTICS AGENCY
ASSIGNMENTS is amended by adding the designation ``P9'' to the Defense
Logistics Agency Federal Supply Class Code numbers ``3611, 3620, 3635,
3650, 3660, 3680, 3685, 3693, 3694''; and by adding footnote ``9''
reading as follows:

Appendix B--Coordinated Acquisition Assignments

* * * * *

PART 4--DEFENSE LOGISTICS AGENCY ASSIGNMENTS

* * * * *
Footnotes: * * *

This partial assignment applies only to secondary items not
otherwise assigned, as listed in the applicable Federal Supply
Catalog Management Data lists of each respective service.

Appendix F to Chapter 2 [Amended]

115. Appendix F to chapter 2 is amended in Part 3, Preparation of
the DD Form 250 and DD Form 250c, paragraph F-302, Mode/method shipment
codes, under the heading DESCRIPTION, by revising the Air Force entry
``Military Airlift Command (Channel and Special Assignment Airlift
Mission)'' to read ``Air Mobility Command (Channel and Special
Assignment Airlift Mission)'', and in Part 4, Distribution of DD Form
250 and DD Form 250c, paragraph F-401, Distribution, Table 2 of
Material Inspection and Receiving Report, the Air Force entry is
revised to read as follows:

PART 4--DISTRIBUTION OF DD FORM 250 AND DD FORM 250c

F-401 Distribution

* * * * *

Material Inspection and Receiving Report

* * * * *

Table 2.--Special Distribution
----------------------------------------------------------------------------------------------------------------
No. of
As required Address copies
----------------------------------------------------------------------------------------------------------------

* * * * * * *
Air Force. On shipments of new production of aircraft and HQ Air Force Materiel Command AFMC/LGM- 1
missiles, class 1410 missiles, 1510 aircraft (fixed wing, AVDO, 4375 Chidlaw Road, Suite 6,
all types), 1520 aircraft (rotary wing), 1540 gliders, 1550 Wright-Patterson AFB, OH 45433-5001.
target drones.

* * * * * * *
----------------------------------------------------------------------------------------------------------------

116. Appendix G to chapter 2 is revised to read as follows:

Appendix G to Chapter II--Activity Address Numbers

Table of Contents

Part 1--General.
G-100 Scope
G-101 Assignment and use of a number
G-102 Activity address number data base maintenance
Part 2--Army Activity Address Numbers.
Part 3--Navy Activity Address Numbers.
Part 4--Marine Corps Activity Address Numbers.
Part 5--Air Force Activity Address Numbers.
Part 6--Defense Logistics Agency Activity Address Numbers.
Part 7--Defense Information Systems Agency Activity Address Numbers.
Part 8--Defense Mapping Agency Activity Address Numbers.
Part 9--Defense Nuclear Agency Activity Address Numbers.
Part 10--Miscellaneous Defense Activities Activity Address Numbers.
Part 11--On-Site Inspection Agency Activity Address Numbers.
Part 12--Ballistic Missile Defense Organization Activity Address
Numbers.
Part 13--Defense Commissary Agency Activity Address Numbers.

PART 1--GENERAL

G-100 Scope.

This appendix identifies the activity address numbers to be used
with the uniform procurement instrument identification numbering system
prescribed in DFARS subpart 204.70.

G-101 Assignment and use of a number.

(a) Activities coding solicitations, contracts and related
instruments shall use only those codes assigned by their respective
department/agency activity address monitor(s).
(b) The six-character code is used in the first six positions of
the procurement instrument identification number (PIIN). When required,
activities also will be assigned a two position code. The two position
code is used in the first two positions of the call/order serial
number.
(c) Activity address monitors are--

Army
U.S. Army Contracting Support Agency, Attn: Contract Support Office
(SFRD-KS), 5109 Leesburg Pike, Suite 916, Falls Church, VA 22041-3201
Navy
*Navy Accounting and Finance Center (NAFC-5511), Washington, DC
20376-5001
Air Force
SAF/AQCO, 1060 Air Force Pentagon, Washington, DC 20330-1060
Defense Logistics Agency
Defense Logistics Agency, Contracting Systems Support Office (DLA-
PS), Cameron Station, Alexandria, VA 22304-6100
Marine Corps
*Headquarters, U.S. Marine Corps, (Code LBP), Washington, DC 20380-
0001
**Defense Mapping Agency
Director of Acquisition, Defense Mapping Agency, Washington, DC
20305-3000
**Defense Nuclear Agency
Chief, Contract Division, Defense Nuclear Agency, Washington, DC
20305-1000
**Defense Information Systems Agency
Chief, Logistics Management Office, Code 202, Defense Information
Systems Agency, Washington, DC 20305-2000

*The Navy and Marine Corps Activity Address Monitor for
assignment of two-character call/order serial number is: Office of
the Assistant Secretary of the Navy (RD&A), Room 536, Crystal Plaza
5, Washington, DC 20350-1000
**Agency activity address monitors forward requests for Appendix
G maintenance to the U.S. Army Contracting Support Agency (SFRD-KS).

G-102 Activity address number data base maintenance.

(a) The Defense Logistics Agency, DLA-PS, Cameron Station,
Alexandria, VA 22304-6100 is the executive agent for maintenance of six
and two character code assignments. The executive agency distributes
blocks of two character codes to department/agency activity address
monitors for further assignment.
(b) Contracting activities submit requests for assignment of or
changes in either the six character or two character codes to their
activity address monitor in accordance with department/agency
procedures. Activity address monitors--
(1) Approve request for additions, deletions, or changes;
(2) Notify the executive editor, Defense Acquisition Regulations
System, OUSD(A&T)DP(DAR), Washington, DC 20301-3000; and
(3) Provide a copy of the notification to the executive agent.
(c) A copy of the Appendix G data base is available on tape or MS-
DOS compatible floppy diskettes from the executive agent.

PART 2--ARMY ACTIVITY ADDRESS NUMBERS

DAAA03--B1
Pine Bluff Arsenal, ATTN: SMCPB-PO, 10020 Karbrich Circle, Pine
Bluff, AR 71602-9500
DAAA05--B2
Rocky Mountain Arsenal, Directorate of Contracting, ATTN: AMXRM-
DOC, Commerce City, CO 80022-2180
DAAA08--B7
Rock Island Arsenal, ATTN: SMCRI-CT, Rock Island, IL 61299-5000
DAAA09--BA
U.S. Army Armament, Munitions and Chemical Command, ATTN: AMSMC-
ABR-TX, Rock Island, IL 61299-6000
DAAA15--ZU
U.S. Army Chemical, and Biological Defense Agency, ATTN: AMSCB-
PCS-S (Procurement Directorate), Aberdeen Proving Ground, MD 21010-
5423
DAAA21--2T
U.S. Army Armament Research, Development & Engineering Center,
ATTN: SMCAR-PCM-O, Building 9, Picatinny Arsenal, NJ 07806-5000
DAAA22--BV
Watervliet Arsenal, ATTN: SMCWV-PPA, Watervliet, NY 12189-4050
DAAA31--GJ
McAlester Army Ammunition Plant, ATTN: SMCMC-PC, McAlester, OK
74501-5000
DAAA32--OP
Crane Army Ammunition Activity, ATTN: SMCCN-CT, 300 Highway 361,
Crane, IN 47522-5099
DAAB07--BG
USA Communications-Electronics Command, C3I Acquisition Center,
ATTN: AMSEL-ACSP-BM, Fort Monmouth, NJ 07703-5008
DAAB08--2V
USA Communications-Electronics Command, C3I Acquisition Center,
ATTN: AMSEL-ACSB-C (Facility ADP Branch), Fort Monmouth, NJ 07703-
5008
DAAB10--ZP
USA CECOM C3I Acquisition Center, Vint Hill Farms Station, ATTN:
AMSEL-ACVF-A-AA (Stop 42), Building 160, Warrenton, VA 22186-5172
DAAB11--D0
USA CECOM C3I Acquisition Center, Vint Hill Farms Station, ATTN:
AMSEL-AC-VHA-HB Base OPS (Stop 42), Warrenton, VA 22186-5172
DAAC01--BH
Anniston Army Depot, ATTN: SDSAN-DOC, Anniston, AL 36201-5003
DAAC02--ZT
Blue Grass Army Depot, Procurement Office, ATTN: SDS-BG-BM-P,
Lexington, KY 40511-5001
DAAC07-ZM
Sierra Army Depot, ATTN: SDSSI-CONT, Herlong, CA 96113-5009
DAAC67--ZN
Letterkenny Army Depot, ATTN: SDSLE-P, Chambersburg, PA 17201-
4152
DAAC71--ZS
Tobyhanna Army Depot, ATTN: SDSTO-K, Tobyhanna, PA 18466-5100
DAAC79--D7
Red River Army Depot, ATTN: SDSRR-P, Texarkana, TX 75507-5000
DAAC83--BJ
Corpus Christi Army Depot, ATTN: SDSCC-C, Corpus Christi, TX
78419-6170
DAAC89--BK
Tooele Army Depot, ATTN: SDSTE-DCBO, Tooele, UT 84074-0839
DAAD01--B5
USA Yuma Proving Ground, Directorate of Contracting, ATTN:
ATEYP-CR, Yuma, AZ 85365-9106
DAAD03--B6
USA Jefferson Proving Ground, ATTN: STEJP-EH-C, Madison, IN
47250-5100
DAAD05--BM
USA Aberdeen Proving Ground Support Activity, ATTN: STEAP-PR/M
(Building 314), Aberdeen Proving Ground, MD 21005-5001
DAAD07--BN
USA White Sands Missile Range, Directorate of Contracting, ATTN:
STEWS-PR, White Sands, NM 88002-5201
DAAD09--BP
USA Dugway Proving Ground, Directorate of Contracting, ATTN:
STEDP-DOC, Dugway, UT 84022-0538
DAAE07--BR
USA Tank-Automotive Command, ATTN: AMSTRA-IDXR, Warren, MI
48397-5000
DAAE20
Armament and Chemical Acquisition and Logistics Activity
(ACALA), ATTN: Acquisition Center Rock Island, IL 61299
DAAE30
Armament RD&E Center (ARDEC), ATTN: Procurement and Production
Directorate, Picatinny Arsenal, NJ 07806-5000
DAAG60--G8
USA Military Academy, Purchasing & Contracting Division, ATTN:
MAPC, Building 667A, West Point, NY 10996-1594
DAAG99--ZY
USA Program Manager-SANG, ATTN: AMCPM-NGA, Unit 61304, APO AE
09803-1304
DAAH01--CC
USA Missile Command, ATTN: AMSMI-AC, Redstone Arsenal, AL 35898-
5280
DAAH03--D8
USA Missile Command, ATTN: AMSMI-AC, Redstone Arsenal, AL 35898-
5280
DAAH04--YU
U.S. Army Research Office, P.O. Box 12211, ATTN: AMXRO-PR,
Research Triangle Park, NC 27709-2211
DAAJ02--D9
Aviation Applied Technology Directorate, ATTN: AMSAT-R-TC,
Building 401, Fort Eustis, VA 23604-5577
DAAJ04--0V
USA Charles Melvin Price Support Center, ATTN: SATAS-P, Granite
City, IL 62040-1801
DAAJ05--ZF
USA Aviation and Troop Command, ATTN: IAS21WG, Building 404,
Fort Eustis, VA 23604-5577
DAAJ09--BS
USA Aviation and Troop Command, ATTN: AMSAT-A-AD, 4300
Goodfellow Boulevard, St. Louis, MO 63120-1798
DAAK01--BB
USA Aviation and Troop Command, ATTN: AMSAT-A-AD, 4300
Goodfellow Boulevard, St. Louis, MO 63120-1798
DAAK60--C5
USA Natick Research, Development and Engineering Center,
Directorate of Procurement, ATTN: SATNC-PP (Procurement Support
Division), Natick, MA 01760-5011
DAAK70--E1
USA Belvoir Research, Development and Engineering Center, ATTN:
SATBE-PMA (Policy & Compliance), Fort Belvoir, VA 22060-5606
DAAL01--1Y
U.S. Army Research Laboratory, ATTN: AMSLC-PR, 2800 Powder Mill
Road, Adelphi, MD 20783-1145
DAAM01--ZU
U.S. Army Chemical and Biological Defense Command, ATTN: AMSCB-
PC, Procurement Directorate, Aberdeen Proving Ground, MD 21010-5423
DAAM02--B2
Program Manager, Rocky Mountain Arsenal, ATTN: AMXRM-PM,
Commerce City, CO 80022-2180
DABT01--F6
U.S. Army Aviation Center, Contracting Office, ATTN: ATZQ-C,
Building T-00116, Fort Rucker, AL 36362-5000
DABT02--2A
U.S. Army Chemical and Military Police Centers and Fort
McClellan, ATTN: ATZN-DOC, Building 241-C, Transportation Road, Fort
McClellan, AL 36205-5000
DABT10--2B
U.S. Army Infantry Center and Fort Benning, ATTN: ATZB-KT,
Building 6, P.O. Box 5-5179, Fort Benning, GA 31905-5179
DABT11--2C
U.S. Army Signal Center and Fort Gordon, ATTN: ATZI-CT, Building
2050B, Fort Gordon, GA 30905-5110
DABT15--F9
U.S. Army Soldier Support Center and Fort Benjamin Harrison,
ATTN: ATZI-CT, Fort Benjamin Harrison, IN 46216-5230
DABT19--2D
U.S. Army Combined Arms Center and Fort Leavenworth, ATTN: ATZL-
GCC, Pope & Thomas Avenues, Fort Leavenworth, KS 66027-5031
DABT23--2E
U.S. Army Armor Center and Fort Knox, ATTN: ATZK-DC, Building
4022, Fort Knox, KY 40121-5000
DABT31--2F
U.S. Army Engineer Center and Fort Leonard Wood, ATTN: ATZT-DOC,
Fort Leonard Wood, MO 65473-5000
DABT39--2H
U.S. Army Field Artillery Center and Fort Sill, ATTN: ATZR-Q,
Building 1803, P.O. Box 3501, Fort Sill, OK 73503-0501
DABT43--2J
Carlisle Barracks, ATTN: ATZE-DOC-C, Building 46, Carlisle
Barracks, PA 17013-5002
DABT47--2K
U.S. Army Training Center and Fort Jackson, ATTN: ATZJ-DOC,
Building 4340, Magruder Street, Fort Jackson, SC 29207-5420
DABT51--2L
U.S. Army Air Defense Artillery Center & Fort Bliss, ATTN: ATZC-
DOC, Building 2021, P.O. Box 6078, Fort Bliss, TX 79916-0058
DABT57--2N
Directorate of Peninsula Contracting, ATTN: ATZF-DPC, Building
2746, Harrison Loop, Fort Eustis, VA 23604-5293
DABT58--2P
Fort Monroe, ATTN: ATZG-C# 62, Building T-195, Fort Monroe, VA
23651-6000
DABT59--2Q
U.S. Army Combined Arms Support Command and Fort Lee, ATTN:
ATZM-DC, Building T-7124, 19th & Quartermaster Road, Fort Lee, VA
23801-5172
DABT60--1L
TRADOC Contracting Agency, ATTN: ATCA, Building 1748, Fort
Eustis, VA 23604-5538
DABT61--BF
The Judge Advocate General's School, USA, University of
Virginia, ATTN: JAGS-SSL-B, 600 Massie Road, Charlottesville, VA
22903-1781
DABT63--BL
U.S. Army Information Systems Command, ATTN: ATZS-DKS, Fort
Huachuca, AZ 85613-5000
DABT64--YV
Chief, Purchasing and Contracting Office, ATTN: ATZR-ZQ,
Building 1390, Fort Chaffee, AR 72905-5000
DABT65--BO
Mission Contracting Activity at Fort Leavenworth, ATTN: ATOB-AL,
614 Custer Road, Fort Leavenworth, KS 66027-7203
DACA01, DACW01--CK
USA Engineer District, Mobile, ATTN: CESAM-CT, P.O. Box 2288,
Mobile, AL 36628-0001
DACA03, DACW03--CL
USA Engineer District, Little Rock, ATTN: CESWL-CT, P.O. Box
867, Little Rock, AR 72203-0867
DACA05, DACW05--CM
USA Engineer District, Sacramento, ATTN: CESPK-CT, 1325 J
Street, Sacramento, CA 95814-2922
DACA07, DACW07--CP
USA Engineer District, San Francisco, ATTN: CESPN-CT, 211 Main
Street, San Francisco, CA 94105-1905
DACA09, DACW09--CQ
USA Engineer District, Los Angeles, ATTN: CESPL-CT, P.O. Box
2711, Los Angeles, CA 90053-2325
DACA10, DACW10--CN
Engineer Procurement Activity for Information Resources, ATTN:
CEEP, Kingman Building #1A09, Fort Belvoir, VA 22060-5582
DACA17, DACW17--CS
USA Engineer District, Jacksonville, ATTN: CESAJ-CT, P.O. Box
4970, Jacksonville, FL 32232-0019
DACA21, DACW21--CV
USA Engineer District, Savannah, ATTN: CESAS-CT, P.O. Box 889,
Savannah, GA 31402-0889
DACA23, DACW23--CX
USA Engineer District, Chicago, ATTN: CENCR-CT, 111 North Canal
Street, Chicago, IL 60606-7206
DACA25, DACW25--CD
USA Engineer District, Rock Island, Clock Tower Building, ATTN:
CENCR-CT, P.O. Box 2004, Rock Island, IL 61202-2004
DACA27, DACW27--CY
USA Engineer District, Louisville, ATTN: CEORL-CT, P.O. Box 59,
Louisville, KY 40201-0059
DACA29, DACW29--CZ
USA Engineer District, New Orleans, ATTN: CELMN-CT, P.O. Box
60267, New Orleans, LA 70160-0267
DACA31, DACW31--DA
USA Engineer District, Baltimore Contracting Division, P.O. Box
1715, Baltimore, MD 21203-1715
DACA33, DACW33--DB
USA Engineer District, New England, ATTN: CENED-CT, 424 Trapelo
Road, Waltham, MA 02254-9149
DACA35, DACW35--DC
USA Engineer District, Detroit, ATTN: CENCE-CT, P.O. Box 1027,
Detroit, MI 48231-1027
DACA37, DACW37--DD
USA Engineer District, St. Paul, ATTN: CENCS-CT, 180 Kellogg
Boulevard East, Room 1421, St. Paul, MN 55101-1479
DACA38, DACW38--DE
USA Engineer District, Vicksburg, ATTN: CELMK-CT, 3515 I-20
Frontage Road, Vicksburg, MS 39180-5191
DACA39, DACW39--DF
USA Engineer, Waterways Experiment Station, ATTN: CEWES-CT-Z
(Contracting Division), 3909 Halls Ferry Road, Vicksburg, MS 39180-
6199
DACA41, DACW41--DH
USA Engineer District, Kansas City, 700 Federal Building, ATTN:
CEMRK-CT, 601 East 12th Street, Kansas City, MO 64106-2896
DACA43, DACW43--DJ
USA Engineer District, St. Louis, ATTN: CELMS-CT, 1222 Spruce
Street, St. Louis, MO 63101-2833
DACA45, DACW45--DK
USA Engineer District, Omaha, ATTN: CEMRO-CT, 215 North 17th
Street, Omaha, NE 68102-4978
DACA47, DACW47--DM
USA Engineer District, Albuquerque, ATTN: CESWA-CT, P.O. Box
1580, Albuquerque, NM 87103-1580
DACA49, DACW49--DN
USA Engineer District, Buffalo, ATTN: CENCB-CT (Contracting
Division), 1776 Niagara Street, Buffalo, NY 14207-3199
DACA51, DACW51--CE
USA Engineering District, New York, Contracting Division, ATTN:
CENAN-CT, 26 Federal Plaza, New York, NY 10028-0090
DACA54, DACW54--DQ
USA Engineer District, Wilmington, ATTN: CESAW-CT, P.O. Box
1890, Wilmington, NC 28402-1890
DACA55, DACW55--DR
USA Engineer Division, Ohio River, ATTN: CEORD-CT, P.O. Box
1159, Cincinnati, OH 45201-1159
DACA56, DACW56--DS
USA Engineer District, Tulsa, ATTN: CESWT-CT, P.O. Box 61,
Tulsa, OK 74121-0061
DACA57, DACW57--DT
USA Engineer District, Portland, ATTN: CENPP-CT, P.O. Box 2946,
Portland, OR 97208-2946
DACA59, DACW59--DV
USA Engineer District, Pittsburgh, ATTN: CEORP-CT-SADBUS, 1000
Liberty Avenue, Pittsburgh, PA 15222-4186
DACA60, DACW60--DW
USA Engineer District, Charleston, ATTN: CESAJ-CT, P.O. Box 919,
Charleston, SC 29402-0919
DACA61, DACW61--CF
USA Engineer District, Philadelphia, ATTN: CENAP-CT, Contracting
Division, 110 Penn Square East, Wanamaker Building, Philadelphia, PA
19107-3390
DACA62, DACW62--DX
USA Engineer District, Nashville, ATTN: CEORN-CT, P.O. Box 1070,
Nashville, TN 37202-1070
DACA63, DACW63--DY
USA Engineer District, Fort Worth, ATTN: CESWF-CT, P.O. Box
17300, Fort Worth, TX 76102-0300
DACA64, DACW64--DZ
USA Engineer District, Galveston, ATTN: CESWG-CT, P.O. Box 1229,
Galveston, TX 77553
DACA65, DACW65--EA
USA Engineer District, Norfolk, Contracting Division, ATTN:
CENAO-CT, 803 Front Street, Norfolk, VA 23510-1096
DACA66, DACW66--EB
USA Engineer District, Memphis, ATTN: CEIMM-CT, B-202 Clifford
Davis Federal Building, Memphis, TN 38103-1894
DACA67, DACW67--EC
USA Engineer District, Seattle, ATTN: CENPS-CT, P.O. Box C-3755,
Seattle, WA 98124-2255
DACA68, DACW68--YW
USA Engineer District, Walla Walla, ATTN: CENPW-CT, Building
602, City-County Airport, Walla Walla, WA 99362-9265
DACA69, DACW69--CG
USA Engineer District, Huntington, ATTN: CEORH-CT, 502 8th
Street, Huntington, WV 25701-2070
DACA72, DACW72--ZA
USA Humphreys Engineer Center, Support Activity, ATTN: CEHEC-CT,
Kingman Building, Fort Belvoir, VA 22060-5580
DACA75, DACW75--ZC
USA Engineer Ordnance Program Division, ATTN: CETAD-OP-C, APO AE
09803-1303
DACA76, DACW76--ZD
USA Engineer Topographic Laboratories, ATTN: CETEC-CT, Cude
Building #2592, Fort Belvoir, VA 22060-5546
DACA78, DACW78--9V

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-12212. Public record. Not legal advice.